Dollar holds steady after yesterday's gains

Kathryn Garvey

August 20, 2020

Dollar holds steady after yesterday’s gains

After reaching two-year lows on Tuesday, the dollar rebounded nearly 1% versus peers and is holding steady this morning. FOMC minutes offered little clues on the Fed’s course of action this fall. Market’s aren’t seeing yesterday’s dollar gains as a reversal and are holding steady ahead of weekly jobless claims due out tomorrow. Last night’s DNC speeches included President Obama, and VP candidate Kamala Harris.

“The measure of intelligence is the ability to change.”

Albert Einstein

FX Rates
August 20, 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 1.1814
GBP/USD 1.3090
USD/CAD 1.3237
AUD/USD 0.7141
USD/JPY 105.93
USD/CNH 6.9193
USD/ILS 3.4033
USD/MXN 22.2955
USD/CHF 0.9118
USD/INR 75.0300
USD
After rising nearly 1% yesterday since Tuesday’s two-year low, the dollar is steady and mixed versus G-10 peers ahead of weekly jobless claims. Capitol Hill remains in a stalemate over another round of stimulus. FOMC minutes released yesterday gave few clues to whether further easing is expected in the fall.
GBP
The pound is up 0.3% versus the dollar after earlier reaching session highs of 1.3150. Brexit negotiations have resumed this week and lack of progress has weighed slightly on the currency.
EUR
The euro dropped versus the dollar yesterday but curbed losses at 1.1810 levels. A bullish view on the currency is expected to remain as the pair trades above the 200-day moving average. The currency was left little changed after ECB minutes release.
CAD
After losing 0.4% yesterday, the Canadian dollar is holding steady against the greenback. Broad US downtrend remains intact and investors are not taking the dollar’s rally as a reversal.
ASIA/PACIFIC
US and China are expected to meet in the coming days to discuss the progress of Phase 1 of the trade deal made in February.

The Japanese yen is up 0.3 against the US dollar after the dollar failed to capitalize on overnight gains. Concerns over US economy held USD bulls back from placing bets.

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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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