Dollar higher on safe-haven status as markets await Trump’s speech at the Economic Club of NY today
Kathryn Garvey | November 12, 2019
The main market event today will be President Trump’s speech at the Economic Club of New York. He is expected to give an update on US-China trade talks as well as announce a decision on eurozone auto tariffs. Investors flocked to the dollar ahead of the speech.
Tuesday: Philly Fed Speech, President Trump at Economic Club of NY, UK Jobless Claims, German ZEW
Wednesday: US PPI, US Initial Jobless Claims
Thursday: US Retail Sales
November 12, 2019
EUR/USD 1.1018 GBP/USD 1.2847 USD/CAD 1.3225 AUD/USD 0.6845 USD/JPY 109.10 USD/CNH 7.0073 USD/ILS 3.5012 USD/MXN 19.1610 USD/CHF 0.9948 USD/INR 71.4675
USDThe dollar moved higher against G-10 and safe-haven currencies. Markets are awaiting President Trump’s comments at the Economic Club of New York today where they will listen for any reference to trade talks and tariff lifts or delays.GBP
Disappointing jobs data sent the pound lower as the Claimant Count Rate edged up to 3.4% versus 3.3% the previous month. Average earnings were also lower than expected at 3.6% versus 3.8% expected. Unemployment data paired with USD buying interest sent the pound lower.EUR
The euro slid lower today. German ZEW Economic Sentiment beat expectations coming in at -2.1 versus -13.2 expected. Key reasons for the beat include improved outlook on Brexit, expectation of delayed auto tariffs and optimism around a US-China trade deal. A beat in ZEW did little to redirect earlier losses as markets await President Trump’s speech today.CAD
The loonie was sent to 1-month lows this morning after a pickup in buying interest for the greenback. A pickup in crude oil prices did little to hinder the dollar’s positive momentum.ASIA/PACIFICMarkets await any references to US-China trade talks in President Trump’s speech today. Protests in Hong Kong began their 23rd week and showed no signs of slowing as a police spokesperson told reporters the city is pushed “to the brink of a total breakdown.”
Given the Japanese yen’s safe-haven status, the currency declined against the US dollar as the market moved to risk-on sentiment.
For more analysis on FX markets or information regarding SVB's FX services:
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.
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.