Daily
FX Update

The dollar rose after Trump said China asked to re-start trade talks

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This weekend’s G7 meeting produced little in the way of news headlines. Markets are closed in London today for the August Bank Holiday thus quietening European markets. The markets will be focused on the Trump/China trade rhetoric this week.

This week’s data line up:

Monday: German IFO Business Climate, US Durable Goods

Tuesday: German Q2 finals GDP, US House Price Index, Conference Board Consumer Confidence

Wednesday: German GfK Consumer Confidence

Thursday: Eurozone Economic Confidence, German CPI, US Q2 GDP second reading, US Pending Home Sales

Friday: German Retail Sales, Eurozone Unemployment rate

  • FX Rates
    August 26, 2019

    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 strengthened after President Trump said the trade talks with China will resume. The risk-off focus resumed helping the dollar rise against most G10 peers. The July Preliminary Durable Goods Orders rose more than expected from +1.8 in June to +2.1% in July. Consumer confidence is due out tomorrow.
    GBP

    The London holiday closure did not stop sterling moves as the pound fell over held a cent likely driven by a stronger dollar.

    EUR

    After a slight rally on Friday, the euro fell by about 0.2% after a German business confidence indicator fell to its lowest level in about seven years. Trump indicated that he and Angela Merkel discussed a trade deal between the US and EU at the G7 conference last week.

    CAD

    The Canadian dollar succumbed to pressure from the strengthening dollar despite oil rising back above $55 per barrel.

    ASIA/PACIFIC

    Asian currencies declined due to the trade dispute with China. The dollar tracked stronger vs the yen - a safe haven currency – after Chinese Vice Premier Liu said his country is willing to restart trade talks.

    The emerging markets are under pressure as the Turkish lira fell 12% against the yen. This is significant as it is a favorite for Japanese investors seeking yield.

    The Australian dollar is strongest performer today.

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Laurence Hayward
WRITTEN BY
Laurence Hayward

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