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Dollar lower before central bank meetings
The dollar is broadly lower, as traders digest the latest Covid-19 surge, the reality of no fiscal stimulus package before the election, and ahead of three upcoming central bank meetings – the European Central Bank (Oct-29), the Bank of Japan (Oct-29), and the Bank of Canada (Oct-28). Equities are steady and bond yields are lower. Both oil and gold are up slightly.
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FX Rates
October 27, 2020Rates 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 1.1833 GBP/USD 1.3037 USD/CAD 1.3176 AUD/USD 0.7132 USD/JPY 104.6100 USD/CNH 6.7012 USD/ILS 3.3821 USD/MXN 20.8739 USD/CHF 0.9068 USD/INR 73.7162
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USD
The dollar moved lower against all currencies. The Norwegian krone gained the most versus the dollar at 0.9%, the Chinese yuan the least at 0.1%. Short-term FX traders are positioned fairly neutral, long-term investors are positioned short the US dollar. Equities are making a small bounce after yesterday’s big sell-off. US 10-Yr treasury yields fell by nearly 5 bps to 0.78%.
GBPThe UK pound bounced off $1.30 support, and now sits near yesterday’s close as EU-UK Brexit negotiations continue. FX speculators are positioned fairly neutral in the GBP, long-term investors are bullish.
EURAmid the second wave of Covid-19 in Europe, traders remain positioned long the euro. The euro edged higher overnight, as traders await Thursday’s ECB meeting. While no change in its benchmark rate is expected (currently -0.50%), markets do want a sign from ECB President Christine Lagarde that more monetary support will be forthcoming sooner rather than later.
CADThe Bank of Canada meets tomorrow, and no change is expected from its 0.25% rate. The Canadian dollar is up slightly on the back of firm oil prices and the broadly weaker US dollar.
ASIA/PACIFICThe Chinese yuan moved little overnight and the Japanese yen gained on safe-haven buying.
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