Daily FX Update: Dollar higher to end quarter

Kathryn Garvey

June 30, 2020

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.

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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.

EUR/USD 1.1216
GBP/USD 1.2297
USD/CAD 1.3683
AUD/USD 0.6863
USD/JPY 107.70
USD/CNH 7.0742
USD/ILS 3.4655
USD/MXN 23.1660
USD/CHF 0.9499
USD/INR 75.50
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.

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

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Kathryn Garvey

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