Dollar gains on profit-taking of risk assets

The US dollar edged higher as profit-taking was seen in equities and other risky assets. Although Chinese stocks made slight gains, global equity markets and commodity prices in general are lower. Germany reported weak industrial data and the European Commission issued a dire warning about potential effects of Covid-19.

“The future depends on what we do in the present.”
Mahatma Gandhi
  • FX Rates
    July 7, 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 is slightly higher, as investors take a breather from the extended risk-on rally in equities and foreign currencies. US equities opened lower following weak European and Asian markets. Atlanta Fed President Raphael Bostic said the economic recovery may be ‘leveling off’ due to the recent increase in Covid-19 cases.


    The UK pound is slightly higher from yesterday’s close after an earlier sell-off. Traders await tomorrow’s presentation to parliament by UK Chancellor of the Exchequer Rishi Sunak with an update on the UK economy and on new actions by the government to support the economy.


    The euro is hovering around $1.13. According to a European Commission report, Europe’s economy will contract more than previously estimated and will take longer to recover. It forecasts eurozone GDP contracting by 8.7%, a percentage point worse than its May prediction. France, Italy and Spain are expected to contract by more than 10%, and Germany by 6.3%. Shares of Germany’s Bayer AG fell by nearly 7% after a US District judge wrote in a court hearing that the proposal for the Roundup-cancer settlement is problematic and will need to be modified.


    The Canadian dollar is little changed overnight, trading between the 1.35-1.36 range where its been for most of the month. Prime Minister Justin Trudeau chose not to attend a trilateral summit in Washington to inaugurate the new US/Mexico/Canada trade pact. Canada’s Business Sentiment dropped to its lowest level since the 2008/2009 recession.


    The onshore Chinese yuan (CNY) dropped briefly below the key 7 level, but now trades virtually unchanged from yesterday’s close. The Chinese government reported that the country’s reserves increased in June by nearly $11bn to $3.112tn.

    The Japanese yen continues to trade in the 107-108 trading range in place for most of July.

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.

Daily FX Update: The US dollar hits 7-week lows as EUR advances on vaccine news


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