Dollar slides, equities lower, tech stocks off

Cate Camerota

October 30, 2020

Dollar slides, equities lower, tech stocks off

The dollar is lower, as traders adjust positions following a volatile “risk-off” week of trading ahead of next week’s election. Tech stocks were punished yesterday, as Apple and Twitter missed earnings estimates. The European Central Bank strongly implied it will ease policy in December, using all monetary tools at its disposal. China announced its new Five-Year plan, which will focus on technology, productivity and modernity. Asian equities dropped, but European equities edged higher. US equities are opening lower. Bond yields are higher, oil is flat, and gold is higher.

"If life were predictable, it would cease to be life, and be without flavor."

Eleanor Roosevelt

FX Rates
October 30, 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 1.1685
GBP/USD 1.2963
USD/CAD 1.3303
AUD/USD 0.7055
USD/JPY 104.5100
USD/CNH 6.6863
USD/ILS 3.4082
USD/MXN 21.2106
USD/CHF 0.9152
USD/INR 74.1100
USD
The dollar is lower across the board, as traders adjust positions established in a week of “risk-off” trading ahead of next week’s elections. Apple and Twitter missed earnings estimates, dragging the all-important US tech sector lower. This morning’s US economic releases – Personal Income and Spending exceeded expectations, and PCE Deflator and Employment Cost Index met expectations.
GBP
The UK pound moved higher following news of solid progress with the EU-UK Brexit trade negotiations, but the GBP/USD currency pair remains under $1.30. Nationwide House Price data for October released this morning beat expectations.
EUR
The euro edged higher in-line with broad dollar weakness, but remains trading under $1.17. Yesterday, ECB President Lagarde kept benchmark rates unchanged, but indicated that they would increase stimulus at the December meeting and would do so using all available tools at its disposal. Q3 GDP figures for France (up 18.2% QoQ) and Spain (up 16.7%) exceeded expectations, but European equities as a group underperformed overnight.
CAD
The Canadian dollar is up slightly on the back of the broadly lower US dollar and on upbeat GDP data in Canada for August. Lower Raw Material prices and Industrial Product prices are providing headwinds.
ASIA/PACIFIC
The Chinese yuan gained 0.5% overnight following news from China’s new Five-Year plan, promising to build a strong China based on technology, productivity and modernity.

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Cate Camerota

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