Daily FX Update: Dollar continues to slide on risk sentiment, euro and pound rise

Kathryn Garvey

June 3, 2020

Dollar continues to slide on risk sentiment, euro and pound rise

Markets, seemingly ignoring current events, are buoyed on optimism about the restart of global economic activities. Futures rose again overnight as Dr. Fauci expressed optimism about a vaccine. The dollar continued to slide versus G-10 currencies with the exception of the Japanese yen.

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FX Rates
June 3, 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.

EUR/USD 1.1205
GBP/USD 1.2572
USD/CAD 1.3533
AUD/USD 0.6895
USD/JPY 108.70
USD/CNH 7.1179
USD/ILS 3.4693
USD/MXN 21.5632
USD/CHF 0.9637
USD/INR 75.4725
USD
Dollar is a little lower – sitting below the 200-day moving average as equities continue to rise. May ADP, PMI and April factory orders are set to release today.
GBP
The pound rose half a percent on the news of optimistic sentiment regarding a compromise on a trade deal between the UK and the EU.
EUR
The euro rose versus the dollar after PMI for the euro area confirmed some parts of the region are starting to economically recover. Gains were capped amid profit-taking. Prospects of a stimulus package for Germany and increased stimulus from the ECB remain in focus for investors.
CAD
The Canadian dollar slipped versus the greenback following two days of gains as oil prices fell ahead of a pending OPEC+ meeting where some nations are suspected of cheating on their output-cuts agreements.
ASIA/PACIFIC
The Japanese yen underperformance sent the pair to test 108.8 levels. The Australian dollar continues to recover touching a 5-month high yesterday fueled by global risk appetite.

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 fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Kathryn Garvey

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