Daily FX Update

Kathryn Garvey

Quarter end positioning boosts dollar

The dollar is broadly higher today amid month and quarter-end positioning and as many parts of the US pause reopening efforts. Markets will listen to Powell and Mnuchin, who are due to speak in front of the House Financial Services committee, for signs of increased relief efforts.
“Know what sparks the light in you so that you, in your own way, can illuminate the world.”
Oprah Winfrey
  • FX Rates
    June 30, 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 rose 0.3% to a four-week high amid month and quarter-end positioning. Powell and Mnuchin are due to speak before the House Financial Services committee this afternoon. In the text release of remarks, they made it clear that government relief will need to remain in place.

    GBP

    The pound is lower after revised data showed Q1 GDP contracted more than expected. GDP fell 2.2% versus 2% expected. On a yearly basis, UK GDP is down 1.7% and the pound weakened to 1.2258 versus the dollar.

    EUR
    The euro is down below 1.12 staying lower even as euro-area inflation showed a slight pickup.
    CAD

    The dollar holds onto gains against the loonie after Canadian GDP for April showed the economy contracted less than expected. The dollar’s safe haven status as well as sliding oil prices supported the move upwards.

    ASIA/PACIFIC
    The yen lost slightly versus the dollar for a fifth session. Dollar demand for month and quarter-end fueled the pair's march higher.
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 fxadvisors@svb.com.
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 privacy@svb.com. You can withdraw your consent at any time.

Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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.
Upbeat US labor data leading stocks higher, dollar softer
 
Read More
Dollar steady, markets consolidating
 
Read More
Dollar gains on profit-taking of risk assets
 
Read More
China rally fuels global risk-on sentiment, dollar lower
 
Read More
Dollar ends week on back foot
 
Read More
Dollar slides as jobs report surprises
 
Read More