.png){kind=logo}
Dollar gains with focus on new virus restrictions
For the first time in a week, the US dollar is opening higher. Investors are moving into the dollar primarily as a safe haven play, as focus changed overnight to soaring Covid-19 cases and on new restrictions on individuals, cities and countries to contain it. This morning’s US labor data was disappointing: Initial Jobless Claims for the week ending November 14 came in at 742K, compared to expectations of 700K. It was the first time in five weeks that applications for US state unemployment benefits rose. Equities and US Treasury yields are both opening slightly lower. Oil and gold prices are trading lower.
-
FX Rates
November 19, 2020Rates 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 1.1832 GBP/USD 1.3218 USD/CAD 1.3095 AUD/USD 0.7272 USD/JPY 103.9900 USD/CNH 6.5781 USD/ILS 3.3479 USD/MXN 20.2318 USD/CHF 0.9126 USD/INR 74.2725
-
USD
Overnight, the dollar edged higher across the board. The higher open this morning was the first such time in six trading days. Global investors have refocused attention on accelerating cases of the pandemic which is spurring tough new restrictions both here and abroad – New York City announced they are closing schools, South Australia began one the world’s tightest lockdowns and Tokyo raised its virus alert after daily infections reached 500 for the first time. US equities are opening 1% lower, US 10-Year Treasury yields are 0.86%.
GBPThe UK pound fell for the first time in a week, as pressures increase with the ongoing UK-EU trade talks. EU leaders are pushing the European Commission to prepare for a “no-deal” outcome as the December 31 deadline approaches.
EURThe euro is lower by 0.2% in-line with broad dollar strength. Much of the EU is in lockdown amid a second wave surge of the pandemic. However, Hungary and Poland are blocking the $2 trillion in disbursements related to EU’s economic relief package, as they both argue against linking any transfers to the “rule of law” – basically, a fight against the EU’s core democratic values.
CADThe Canadian dollar outperformed most other G-10 currencies, but edged lower in-line with broad US dollar strength. Oil prices have slightly lower after firming during the entire month of November.
ASIA/PACIFICThe South Korean won led Asian emerging market currencies lower, as its government showed concern with the recent gains in the currency. SK’s Finance Minister said it will take active measures “at any time” to stabilize the currency.
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/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 PrivacyOffice@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. Please add us to your trusted list of senders, contacts or address book.
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. ©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and 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. |
