Dollar index jumps towards key 100 level

The dollar index (DXY) rose towards a psychologically important 100 level, which has not been seen since 2017. Despite reports that new cases of the coronavirus are slowing in China, an increase of cases in Japan and South Korea sent investors seeking safe havens. Majors slid versus the dollar as the US currency is up nearly 3% in 2020.

“It is the dim haze of mystery that adds enchantment to pursuit."

Antoine Rivarol, French writer

FX Rates
February 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 1.0817
GBP/USD 1.2863
USD/CAD 1.3243
AUD/USD 0.6625
USD/JPY 112.11
USD/CNH 7.0371
USD/ILS 3.4271
USD/MXN 18.7455
USD/CHF 0.9822
USD/INR 71.6612
USD
The dollar has gained for another day as a spike in coronavirus cases in South Korea and fatalities in Japan sent investors to safe havens. The dollar index rose towards a psychologically important 100 level – a level not seen since 2017. Jobless claims are due out this morning and are expected to show a slight increase to 210,000.
GBP
Despite edging up after UK retail sales beat expectations, sterling fell for a fourth straight day to its lowest level since November on lingering Brexit uncertainty and the increasing strength of the US dollar.
EUR
The ECB will release an account of its January meeting, which investors will comb for clues to a change in current policies. French CPI came in as expected at 1.5% YoY. The euro continues to trade near multi-year lows on dollar strength and weak economic conditions in the eurozone.
CAD
US dollar strength outweighed higher oil prices and lifted the USD/CAD pair above 1.3260. Canada will release retail sales tomorrow, and they are expected to increase 0.1%.
ASIA/PACIFIC
The offshore yuan sank following reports of analysts skepticism regarding the effectiveness of China’s stimulus efforts. Despite coronavirus concerns, USD/JPY soared towards 112.00 yesterday with the yen sinking near 2% from Wednesday’s open.

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/foreign-exchange

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