Dollar mixed on risk-off tone and upbeat European data

The dollar is mixed versus its major peers today. The GBP and EUR were bid as UK unemployment hit the lowest level in 40 years and eurozone consumer confidence hit the highest level in four years. Modest demand for the dollar was seen following a rise of a disease outbreak in China ahead of expected mass travel for the Chinese Lunar New Year.

Tuesday: World Economic Forum in Davos, Switzerland begins, German ZEW Surveys

Wednesday: Bank of Canada Rate Decision, Canada CPI

Thursday: US Jobless Claims

Friday: Markit France Manufacturing, Markit Eurozone Manufacturing

  • FX Rates
    January 21, 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 is slightly lower versus most G-10 peers and is awaiting fresh direction. A bid for haven currencies due to a deadly virus outbreak in China was offset by upbeat data out of the UK and eurozone. The US data calendar is blank today, and the Fed remains in a blackout period ahead of the January meeting.

    GBP
    The pound advanced 0.5% versus the greenback following a UK labor report showing the unemployment rate at 3.8%, a 40-year low. Markets are pricing in a 60% chance of a rate cut by the Bank of England come January 30.
    EUR

    The euro rose slightly after German ZEW survey showed investor confidence rose to the highest level in four years.

    CAD

    The Canadian dollar slipped versus the dollar amid lower oil prices and a flight to safety as markets reacted to the increased seriousness of a deadly virus in China.

    ASIA/PACIFIC

    The Japanese yen rose versus the dollar amid risk-off sentiment ahead of China’s Lunar New Year holiday. The Bank of Japan left rates unchanged as expected and adjusted their GDP growth forecast up to 0.9% from 0.7%.

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 privacy@svb.com. You can withdraw your consent at any time.

Kathryn Garvey
WRITTEN BY
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.
Dollar slides as markets await Trump’s China comments
 
Positive economic outlook prevails as dollar weakens
 
Dollar inches up on US/China concerns
 
Dollar falls to lowest since March
 
Dollar strengthens as US-China tension becomes focus
 
US dollar advances for first time this week