Dollar and equities drop after Powell's comments

In a speech this morning, Fed Chair Powell said the US economy faces unprecedented challenges and significant downside risks that could do long-lasting harm to businesses and households. US equities sold off from earlier highs, the dollar dropped, and UST 10-yr yields are at 0.65%. UK 1Q GDP fell less than expected, India announced a stimulus package of about 10% of GDP, and the Reserve Bank of New Zealand left its cash rate unchanged but doubled its monthly bond-buying program to NZD 60bn. Gold trades just above $1700 and oil is steady at $25.50.

“As you go through life, you’ve got to see the valleys as well as the peaks.”
Neil Young
  • FX Rates
    May 13, 2020

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.

  • USD
    The dollar continued lower following Fed Chair Powell’s speech at the Peterson Institute this morning, where he painted a dire picture of the future for our country. He also pushed back on the idea of negative interest rates. Eurodollar options prices currently point to negative rates in mid-2021. US PPI for April fell by a record 1.3%, the decline led by a 19% drop in energy costs.

    The UK economy contracted by 2% in Q1 with March’s -5.8% MoM decline the worst on record. A slightly weaker dollar has pushed up the UK pound, but even at $1.23 it trades not far from its one-month lows at $1.2250. UK Chancellor Sunak forecasts further significant (economic and social) disruption and significant recession.


    Equity markets were lower in Europe following release of a troubling eurozone Industrial Production for March, which fell by 11.3% MoM. The euro is up, but primarily due to the weaker dollar.


    The Canadian dollar is higher following Fed Chair Powell’s impactful, upsetting comments this morning. There is no Canadian economic data scheduled for today.


    The New Zealand dollar weakened dramatically following the RBNZ meeting. Although there was no rate cut, an unexpected increase in QE was announced.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at
See all of SVB's latest FX information and commentary at

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at You can withdraw your consent at any time.

Scott Petruska, CFA
Scott Petruska, CFA

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Global stocks reach all-time highs on strong China GDP, soft US bond yields


Daily FX Update: Lower dollar, higher stocks amid upbeat US earnings & economic data


Daily FX Update: Stocks firm, dollar lower ahead of bank earnings reports


Daily FX Update: CPI exceeds expectations, stocks and dollar mixed


Daily FX Update: Stocks & dollar lower ahead of inflation and retail sales data


Daily FX Update: Treasuries, Dollar tick higher to end week