Upbeat data out of the eurozone overshadow risk-off sentiment sending dollar lower

The dollar weakened versus most G-10 peers as upbeat data out of the eurozone overshadowed the market’s risk-off tone. Both UK and eurozone PMI revisions rose, strengthening their currencies. Haven assets, including gold, the Japanese yen and Swiss franc, advanced showing a soured market sentiment following escalation in tensions between the US and Iran.

Economic Data this Week

Monday: US Markit PMI later this morning

Tuesday: US Durable Goods

Wednesday: GE Factory Orders, FR Consumer Confidence

Thursday: US Jobless Claims, GE Industrial Production

Friday: US Nonfarm Payrolls, FR Industrial Production, CA Unemployment

  • FX Rates
    January 6, 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.

  • USD

    The dollar slipped against most G-10 peers amid tensions with Iran. Investors flocked to safer asset classes including the Japanese yen, Swiss franc and gold. Spot gold prices rose to the highest level in 7 years. Markets will closely watch Friday’s employment data where a gain of 160K non-farm payrolls is expected.


    The pound also advanced nearly half a percent versus the dollar after UK Services PMI was revised up to 50.00 – a sign the UK economy is not as weak as initially thought. This week, British lawmakers will reconvene to further debate the EU divorce deal PM Johnson has agreed with Brussels.


    The euro advanced after Eurozone Services PMI beat estimates and rose to 52.8 in December.


    Despite crude oil prices topping $70 a barrel, the loonie did not strengthen. Industrial Product Price Index rose 0.1% in November after being unchanged in October beating expectations of a 0.5% decline.


    The Japanese yen rose to 3-month highs versus the dollar on haven status buying following rising tensions between the US and Iran.

    On trade watch, a delegation from China has tentative plans to travel to Washington on 13 January to sign phase one of a trade pact.

Contact Us

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

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.

Kathryn Garvey
Kathryn Garvey

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Daily FX Update: Dollar falls to two-year lows amid month-end flows and vaccine optimism


Daily FX Update: Stocks and bonds mixed, dollar up slightly, copper soars


Daily FX Update: Dollar gains with focus on new virus restrictions


FX Daily Update: Markets quiet with focus on vaccine news


Daily FX Update: Markets retreat, retail sales disappoint


FX Daily Update: Positive vaccine and lockdown news buoys markets