FX Update

Dollar held onto yesterday’s gains versus most majors currencies

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Currency markets remain largely unchanged overnight. The dollar is slightly firmer following yesterday’s strong US data, and overall bleak news out of the eurozone and the UK. Brexit rhetoric remains a guiding driver of the pound. US housing starts came in slightly weaker than expected.
"Patience is the companion of wisdom."
Saint Augustine
  • FX Rates
    July 17, 2019

    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
    After firming yesterday, the dollar remains mostly unchanged following this morning’s US housing data, which was slightly lower than the forecast. Fed Chair Powell’s dovish comments yesterday highlighted the importance he is paying to global developments, “US economic developments affect the rest of the world, and the reverse is also true…”. Tomorrow, we get US jobless claims and the Philadelphia Fed Business Outlook.
    The pound hovers near two-year lows after the market priced in a higher probability of a no-deal Brexit along with stagnating UK economic data. Some market technicians are calling for a long dive to parity ($1.00 is 19% from today’s $1.2410) with the dollar if there is a no-deal Brexit come October.
    The euro remains within a tight trading range, rising ever so slightly in advance of this week’s G-7 meetings in Italy. Gains are capped by the stronger dollar and a spillover of Brexit uncertainty, affecting both sides of the English Channel.
    The loonie was slightly firmer ahead of Canada’s inflation and manufacturing sales data, but then slipped after soft numbers.

    China’s central bank increased market liquidity by injecting 260 billion yuan into the economy after corporates made their income tax payments. Onshore and offshore renminbi hold steady against the dollar.

    The aussie is lower versus the dollar. Upbeat jobs data due out Thursday could provide fresh direction.

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Kathryn Garvey
Kathryn Garvey

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