Dollar steady after GDP slump

Investors got a sense of how the Covid lock-down has impacted GDP as data released today showed the US economy contracted at an annualized rate of 32.9% in the second quarter. This period accounts for the April and May shelter-in-place orders that impacted large parts of the country. The dollar held steady after the release and is higher versus the euro, Canadian dollar, and Japanese yen.

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  • FX Rates
    July 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.

  • USD

    The dollar was higher ahead of GDP data on profit taking on short positions after Wednesday’s FOMC meeting. Jobless claims rose 1.4 million which was in-line with expectations and represents the second week in a row initial claims have increased over the prior week since March. Second quarter GDP plunged a record amount, -32.9% annualized versus -34.7% expected.


    GBP/USD gained above 1.30 driven by a slump in the EUR/GBP and is the only currency trading higher versus the dollar today.


    The euro retreated from its 22-month high driven by profit taking and German preliminary GDP data showing a 10.1% slump for the quarter.


    The Canadian dollar fell ahead of US GDP data release and a 1.9% decrease in WTI oil prices.


    USD/JPY is around 105 after Japanese Finance Ministry officials said they will watch the FX markets with a sense of urgency.

    Dollar-yuan broke through the psychologically important 7.00 barrier and the growing tensions between China and the US are closing the door for prospects of a rally ahead of the US election.

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Kathryn Garvey
Kathryn Garvey

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