Daily FX Update: Dollar lower as equities rebound

Kathryn Garvey

June 29, 2020

Dollar mostly lower vs G-10 peers ahead of Tuesday testimony

Dollar is broadly lower this morning as US equity futures indicate a rebound after Friday’s drop. Markets will pay attention to Fed Chair Jerome Powell and Treasury Secretary Mnuchin’s testimony before the House Financial Services committee tomorrow. Global COVID cases topped 10 million with deaths topping 500K.

Monday: U.S. Pending Home Sales May, Dallas Fed Manufacturing
Tuesday: UK GDP, US Consumer Confidence
Wednesday: FR Markit Manufacturing, Eurozone Manufacturing
Thursday: US Jobs Report

FX Rates
June 29, 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 1.1277
GBP/USD 1.2304
USD/CAD 1.3671
AUD/USD 0.6860
USD/JPY 107.43
USD/CNH 7.0748
USD/ILS 3.4360
USD/MXN 23.1306
USD/CHF 0.9463
USD/INR 75.58
USD
The dollar breaks a three day advance amid cautious month and quarter-end volumes as global COVID cases top 10 million. The dollar outperforms just the pound and the yen. Powell and Mnuchin are expected to outline additional government stimulus measures before the House Financial Services Committee tomorrow.
GBP
For the first time since March, Brexit talks began today in Brussels. Current talks are scheduled through August with the hope of compromise for a deal to be signed by October. The pound is down versus the dollar giving up gains made during Asian hours following PM Johnson’s promise of a “big plan” for post-pandemic recovery.
EUR
The euro outperformed as funds sold the dollar and moved to the euro. The advance was accelerated by an increase in German inflation rates.
CAD
The loonie gained against the greenback amid surging COVID cases in the US.
ASIA/PACIFIC
The dollar is up slightly against Japanese yen. The Chinese yuan rose on indications that the Chinese domestic economy is rebounding. Profits of industrial enterprises rebounded in May for the first time since November.

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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