Dollar ends lower for sixth straight week

The dollar will end the week lower for the sixth time in a row. Data out of the US today showed personal incomes declined in June as benefits of stimulus checks subsided. Congress has failed to agree on a second stimulus deal as $600 a week benefits for the unemployed expire.

“It takes a great deal of bravery to stand up to our enemies, but just as much to stand up to our friends.”  -Harry Potter and the Sorcerer’s Stone

Joanne Kathleen Rowling
  • FX Rates
    July 31, 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 pares some losses and is set to end lower for the sixth straight week. On the data front, personal incomes declined 1.1% in June – more than the 0.6% decline expected. Consumer spending increased by 5.6%, but remains largely below pre-pandemic levels.

    GBP

    The pound added 0.3% and could continue to gather steam if spot continues to move further away from 1.30 strikes that expire in the next two weeks.

    EUR

    The euro is testing its 100-month moving average of 1.1885 amid profit taking. The Common Currency slid off of a 1.1909 high for the day after a report showed the eurozone has officially sank into a recession.

    CAD

    The Canadian dollar is rangebound in month-end flows and unchanged following May’s GDP release which showed an expected 4.5% gain.  

    ASIA/PACIFIC

    The offshore  yuan strengthened 0.31% versus the dollar. On Thursday, President Xi Jinping said that monetary policy must be more targeted and given he did not call for lower interest rates or reserve requirement ratios, authorities will keep monetary policy stable in the medium term.

    Japanese yen advances 0.4% versus the dollar after PMI and consumer spending releases this morning.

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

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 privacy@svb.com. You can withdraw your consent at any time.

Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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.

Daily FX Update: Dollar slides, equities lower, tech stocks off

 

Dollar steady after better economic data

 

Daily FX Update: Dollar higher amid new European lockdowns and restrictions

 

Daily FX Update: Dollar lower before central bank meetings

 

Dollar higher amid rise in coronavirus cases, stimulus stalemate

 

As risk appetite grows dollar weakens