FX Daily Update: Dollar slides for sixth day, equities push higher

Kathryn Garvey

June 2, 2020

Risk on sentiment keeps dollar lower

The greenback is lower versus all G-10 peers with the exception of the Japanese yen and Swiss franc. Despite civil unrest across the United States, investors focus on the reopening of some economies and additional stimulus. European investors look ahead to the Thursday when UK-EU trade negotiations begin, and an ECB meeting is likely to provide more stimulus.

"It's up to all of us—Black, white, everyone—no matter how well-meaning we think we might be, to do the honest, uncomfortable work of rooting it out. It starts with self-examination and listening to those whose lives are different from our own. It ends with justice, compassion, and empathy that manifests in our lives and on our streets."

Michelle Obama

FX Rates
June 2, 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 1.1174
GBP/USD 1.2562
USD/CAD 1.3534
AUD/USD 0.6853
USD/JPY 108.38
USD/CNH 7.1163
USD/ILS 3.4743
USD/MXN 21.8626
USD/CHF 0.9620
USD/INR 75.3562
USD
The dollar slid as equities traders looked past immense social unrest in the states to signs of additional stimulus. The dollar slid for the fourth session in a row. The labor report out on Friday is expected to show unemployment top 19% for May – the highest since the 1930's.
GBP
Sterling also rose versus the dollar helped by a report indicating the UK is willing to compromise with the EU during trade negotiations that are set to resume on Thursday.
EUR
The euro carried higher for a sixth day amid unwinding of carry trades, and momentum ahead of Thursday’s ECB meeting where they are expected to expand stimulus measures by 500 billion euros.
CAD
The Canadian dollar rose to three-month highs versus the dollar as oil prices continued to climb and the pair carried through a technical support line yesterday.
ASIA/PACIFIC
A key technical level triggered sales on the Japanese yen and the pair is trading higher at 108.47. The Australian dollar also outperformed rising 1% to a new four-month high.

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

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.

Source: Bloomberg

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

©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.

The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.

Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.

WRITTEN BY

Kathryn Garvey

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Global stocks reach all-time highs on strong China GDP, soft US bond yields

Scott Petruska, CFA

Daily FX Update: Lower dollar, higher stocks amid upbeat US earnings & economic data

Scott Petruska, CFA

Daily FX Update: Stocks firm, dollar lower ahead of bank earnings reports

Scott Petruska, CFA

Daily FX Update: CPI exceeds expectations, stocks and dollar mixed

Scott Petruska, CFA

Daily FX Update: Stocks & dollar lower ahead of inflation and retail sales data

Scott Petruska, CFA

Daily FX Update: Treasuries, Dollar tick higher to end week

Kathryn Garvey