Daily
FX Update

Political risk takes over from trade talks as markets boost dollar on risk aversion

" | 

The US dollar regained all ground lost yesterday as markets see US impeachment investigation as adding to market uncertainty. The British pound is weaker as political uncertainty takes center stage after Boris Johnson’s suspension of parliament is found to be unlawful leading to calls for his resignation.

“If you could kick the person in the pants responsible for most of your trouble, you would not sit for a month.”

Theodore Roosevelt
  • FX Rates
    September 25, 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

    The dollar is much stronger this morning compared to yesterday's close.  Financial markets are factoring-in efforts to impeach Trump by Democrats.  Although there is seemingly little chance an actual impeachment will occur at this time, the potential distraction from trade talks leads to uncertainty.
    New home sales for August will be released later this morning.

    GBP

    The British pound has fallen almost 1% since the UK Supreme Court found Boris Johnson’s suspension of parliament to be unlawful. Brexit is still a concern, but the Prime Minister now needs to focus on keeping his job.

    EUR

    The euro bounces around lows from May 2017 as markets continue to evaluate the ECB’s rate cut from earlier this month. Economists are concerned the eurozone has reached the maximum benefit from low rates.

    CAD

    The Canadian dollar weakened slightly on overall dollar weakness and also a steadily weakening oil price. Saudis are reporting oil production is resuming faster than initially expected after terror attacks earlier this month. The oil price has now given back most all its gains since the attack.

    ASIA/PACIFIC

    The Chinese renminbi was set weaker overnight despite a thawing in the US/China trade war.
    The Japanese yen weakened after 5-year bonds traded at -0.40%, an all-time low. This after the head of the Japanese central bank indicated interest rates may need to be cut further. 

Contact Us

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 privacy@svb.com. You can withdraw your consent at any time.

Peter Compton
WRITTEN BY
Peter Compton

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.

Daily FX Update: Risk sentiment keeps FX market on edge

 

Daily FX Update: Dollar soars as risk tolerance sinks

 

Daily FX Update: Dollar mixed in quiet markets ahead of the weekend

 

Daily FX Update: Dovish Fed comments support dollar, equities trade lower

 

Daily FX Update: Dollar lower on expectations of dovish Fed today

 

FX Daily Update: Dollar lower and markets risk-on as Empire manufacturing beats expectations