Dollar firms on risk off sentiment

The dollar gained broadly against peers as investors look to shed risk ahead of the weekend. Risk-off sentiment in European and US markets sent investors to safe haven assets including the US dollar and Japanese yen. Profit taking and concerns over economic uncertainty sent both the pound and euro lower.

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  • FX Rates
    August 21, 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 greenback is higher against peers today after falling to two-year lows on Tuesday. The currency is up 0.5% today and on pace to gain 0.2% on the week. Risk-off sentiment in equities bolstered the dollar ahead of next week’s Jackson Hole gathering.
    GBP

    After rallying to a YTD high on Wednesday, the pound dropped 0.8% versus the greenback on profit taking and as both sides of Brexit negotiations warn of stalled negotiations.

    EUR

    After a bullish run earlier in the week, the euro fell nearly 1% after disappointing PMI data, extended profit taking from Wednesday and signs of a second Covid wave in Europe. PMI data showed a slowing economic recovery. Eurozone PMI for August dropped to 51.6 vs 54.9 in July as companies remain cautious about employment and economic recovery.

    CAD
    The Canadian dollar lost ground versus the US dollar on broad greenback strength. The Canadian currency is still set for six straight weeks of gains versus the dollar.
    ASIA/PACIFIC

    The Japanese yen gained alongside the greenback and the pair is left unchanged. The yen is heading for a 0.7% gain versus the dollar this week.

    In Asia hours, the Chinese yuan rallied past a key support level versus the greenback and outperformed Asian peers on US-China trade talk optimism.
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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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