Dollar higher than most G-10s as dollar’s decline runs out of steam

The dollar snapped a five session losing streak and is higher versus most peers as additional stimulus measures were presented in Europe and concern over a Brexit trade deal continues to weigh on the pound. US Jobless Claims data showed a decline in new filings.
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  • FX Rates
    June 4, 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
    The dollar is mostly flat today after sliding 2.6% since May 25. The dollar is lower versus the euro and higher versus the pound and Canadian dollar. Jobless claims data released today showed jobless claims falling from last week, indicating that perhaps the worst of layoffs are over.
    GBP

    Sterling tracked lower today as speculation about negative interest rates weighed on the currency along with concern over reaching a trade agreement by June 30. Investors are reducing sterling exposure in the options markets.

    EUR
    Euro initially advanced to the highest level since March, surging on a large ECB quantitative easing package announced today. The package adds another EUR 600B to the Pandemic Emergency Purchase Program which is higher than the 500B anticipated. This was announced in addition to a EUR 130B deal in Germany. The currency pared gains and is currently falling versus the dollar.
    CAD
    The Canadian dollar whipsawed as the US dollar reacted to the ECB announcement which extended the stimulus program. The loonie later weakened as oil prices retreated from session highs.
    ASIA/PACIFIC

    As equities in Asia fell, the yen advanced 0.1% versus the dollar. The Australian dollar fell as profit takers pulled out of the market after the currency hit a five month high versus the dollar. 

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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