Daily FX Update: Dollar rises as risk-off mood persists

Kathryn Garvey

October 15, 2020

Dollar rises as risk-off mood persists

Stalled stimulus talks and second-wave lockdown measures in Europe prop up the US dollar. Covid cases continue to rise across the UK and Europe with major cities reinstating serious restrictions and curfews. Treasury Secretary Mnuchin’s comments yesterday deflated hopes of a second round of stimulus ahead of the election as the White House, Republicans and Democrats continue to play the blame game.

“Healthy citizens are the greatest asset any country can have.”

Winston Churchill

FX Rates
October 15, 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 1.1694
GBP/USD 1.291
USD/CAD 1.3235
AUD/USD 0.7061
USD/JPY 105.26
USD/CNH 6.7238
USD/ILS 3.3925
USD/MXN 21.43
USD/CHF 0.9146
USD/INR 73.38
USD
The dollar is higher against all G-10 peers as equity shares slump and second wave Covid concerns rise in Europe. US Treasury Secretary, Steven Mnuchin commented yesterday that a second round of stimulus ahead of the Presidential election “would be difficult”.
GBP
Despite being the big gainer yesterday, the pound gave up 0.8% after the government increased the Covid alert level and imposed new restrictions starting on Saturday.
EUR
The euro pulled back as bond yields drop and curfews are imposed on large cities. The aggressive drop could change the pair's previous bullish trend if the pair stabilizes below the 1.17 level.
CAD
As risk sentiment deteriorated, the loonie slipped the most in three weeks posting a 0.8% loss versus the dollar for the month. ADP payroll data showed Canadian payrolls fell 240.8K in September.
ASIA/PACIFIC
The yen trades mostly sideways near the 105 psychological level. The Chinese yuan drops slightly as the PBOC injects liquidity to keep recovery on track.

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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