Dollar slides for fourth session

Kathryn Garvey

August 17, 2020

Dollar slides for fourth session

The dollar opens the week lower for the fourth straight session in thin trading. Equities remain steady with the S&P 500 within 1% of February’s record close. The pound and euro are only slightly changed versus the dollar as traders await directional bias from the market.

This Week’s Economic Data:

Monday: Japan Industrial Production
Tuesday: US Housing Starts
Wednesday: UK CPI
Thursday: France Markit Manufacturing
Friday: US manufacturing PMI, Eurozone Manufacturing PMI

FX Rates
August 17, 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 1.1866
GBP/USD 1.3104
USD/CAD 1.3215
AUD/USD 0.7209
USD/JPY 106.15
USD/CNH 6.9340
USD/ILS 3.4035
USD/MXN 22.0042
USD/CHF 0.9067
USD/INR 74.8862
USD
The dollar lags behind for a fourth straight session amid thin trading. Nancy Pelosi is set to call back Congress this week to vote on a Postal Service bill to ensure ballots can be delivered in time for the election. Congress departed for summer recess despite failing to come to agreement over another round of stimulus. The Democratic National Convention begins tonight and will be hosted virtually.
GBP
The pound is down slightly versus the dollar trimming previous gains. The pair lacks directional bias amidst nervousness as markets wait for Brexit trade negotiations to resume in Brussels tomorrow.
EUR
The euro trimmed gains and is up only slightly versus the dollar as European countries take on additional measures to stop the resurgence of COVID.
CAD
The Canadian currency led G-10 gainers versus the dollar as the pair opened the week 0.3% lower mostly on dollar weakness.
ASIA/PACIFIC
Despite a risk on mood in the markets, the yen gained for a second day. The US and China postponed talks aimed at reviewing progress at the six-month mark of their phase-one trade agreement as President Trump continues to mark tough positions against China ahead of November’s election.

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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