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Risk-on trading weakens as Fed signals willingness to help if coronavirus spreads
Fed Chair Powell tells congress the coronavirus’ impact on the Chinese economy may spill over to affect the US economy in which case the Fed stands ready to act. The dollar sold off against most currencies as financial markets begin to view the impact of the virus as limited resulting in risk-on trading and selling of safe-haven assets.
“The very essence of instinct is that it's followed independently of reason”
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FX Rates
February 11, 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 1.0917 GBP/USD 1.2960 USD/CAD 1.3292 AUD/USD 0.6723 USD/JPY 109.79 USD/CNH 6.9662 USD/ILS 3.4106 USD/MXN 18.6742 USD/CHF 0.9776 USD/INR 71.2850
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USD
Jerome Powell delivers his economic views before the House Financial Committee today for the first of a two day semi-annual testimony. The Fed is expected to reaffirm confidence in the economic outlook and steady monetary policy. The Democratic primary in New Hampshire tonight will be watched by markets for the emergence of a clear Democratic front-runner. Markets have largely been pricing in a Trump re-election and could correct significantly should the Democrats put forward a contender.
GBPThe pound strengthened today as GDP data came in better than expected, offset somewhat by worse than expected manufacturing data for December. Some FX market participants are calling a low on the pound and expect the pound to strengthen to 1.35 before year-end.
EURThe euro was up against the dollar, but only slightly, as political uncertainty weighed on the common currency. Germany and Ireland are both facing political change as the economy stagnates across the eurozone.
CADThe loonie strengthened this morning as oil rebounded 2% off yesterday’s lows. Risk-on market sentiment helped the Canadian dollar and equities.
ASIA/PACIFICJapan’s yen slipped while the Australian dollar strengthened against the greenback.
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