Dollar shakes off jobless claims, mixed versus peers

The dollar is mixed against its peers today following the jobless claims report that showed 3.17 million jobs lost for the week ending May 1 – lower than last week’s 3.85 million. Trump reigniting tensions between the US and China have the dollar on edge as investors await trade representatives from the two countries to speak next week. BoE left rates unchanged but signaled continued stimulus measures next month. The loonie and other commodity currencies outperformed as June WTI contracts rose 10% to one month highs.

I can never be safe. I always try and go against the grain. As soon as I accomplish one thing, I just set a higher goal. That’s how I’ve gotten to where I am. 

 

Beyonce
  • FX Rates
    May 7, 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
    President Trump reignited trade tensions saying the US would be evaluating China’s compliance with Phase 1 of the trade deal. US and Chinese negotiators are expected to talk next week. The dollar initially lost ground but rose ahead of jobless claims data which showed 3.17 million jobs lost.
    GBP
    The BoE meeting today left rates unchanged but signaled they expect to expand stimulus efforts next month. The BoE also said they are expecting Britain's economy to shrink as much as 25% in GDP in Q2 and up to 14% for the full year. The pound gained slightly after the BoE announcement and markets will look to Sunday’s comments from Boris Johnson on next steps on potential lifting of lockdown restrictions.
    EUR

    The euro continued trading below $1.08, adding to a 1.6% three-day fall. German industrial production plunged 9.2% in March and is down 11.6% YoY. EUR/USD remains fairly immune to data swings and remains range-bound.

     

    CAD
    The loonie outperformed the dollar on a pickup in oil prices as June WTI futures rose 10% to one-month highs.
    ASIA/PACIFIC

    Chinese and US trade negotiators are expected to speak as soon as next week after President Trump threatened to terminate the existing Phase 1 trade agreement. The offshore yuan advanced slightly as investors were mixed in assessing disappointing economic data and the potential risk of another trade war.

    The yen gained versus the dollar for the first session in five on increased tensions between the US and China.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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