.png){kind=logo}
Yesterday’s dollar rally gave back some ground as China expresses hope for trade settlement
Peter Compton | August 15, 2019
Calmer financial markets this morning saw the US dollar weaken after a very strong day yesterday. China struck a conciliatory tone in comments on trade discussions providing a relief rally in some global markets. US economic data released this morning came in stronger than expected subsequently lifting the dollar.
“Wonder is the beginning of wisdom.” Socrates |
-
FX Rates
August 15, 2019Rates 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 1.1137 GBP/USD 1.2126 USD/CAD 1.3336 AUD/USD 0.6777 USD/JPY 106.09 USD/CNH 7.0545 USD/ILS 3.5227 USD/MXN 19.6611 USD/CHF 0.9751 USD/INR 71.2738
-
USD
Economic data including July retail sales, productivity and non-farm labor costs all came in significantly stronger than expected this morning, highlighting a conundrum for the Federal Reserve. That is, while the global economy weakens- leading the Fed to cut rates- the US economy is very strong, suggesting rates should remain at current levels. Yesterday the dollar gained strength throughout the day as equity markets around the world saw heavy selling.
GBPThe British pound is stronger today after UK retail sales for July came in better than expected at 3.3% YoY including automobiles. Jeremy Corbyn wrote a letter to party leaders in parliament proposing a temporary government to pursue a Brexit deadline extension to avoid a no-deal exit. Keeping with Brexit, Germany’s Angela Merkel said on Wednesday that she wants “a withdrawal that will at the same time yield a close partnership between Britain and the EU member states“.
EUREurozone economic growth slowed in Q2 as economies in the region lost steam. Germany’s export-driven economy contracted due to trade conflicts and uncertainty over Brexit, which manifested in the data.
CADThe Canadian dollar is slightly weaker this morning despite private payroll numbers for July coming in much better than expected. Oil price is down again today.
ASIA/PACIFICThe off-shore Chinese renminbi strengthened suddenly as China sold RMB bills in Hong Kong to make it harder for speculators to bet against CNH. Employment data from Australia were better than expected, boosting the local currency.
The Japanese yen weakened some this morning as concerns abated regarding yesterday’s financial market losses.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/foreign-exchange
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 Policy. If you have privacy questions, you may contact us at privacy@svb.com. You can withdraw your consent at any time.
Thank you for subscribing to SVB's Daily FX Update.
You’re almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. We also suggest you whitelist the svb.com domain.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
| Source: Bloomberg | |
This article is intended for U.S. audiences only. ©2019 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. |