Political risk takes over from trade talks as markets boost dollar on risk aversion
Peter Compton | September 25, 2019
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.” |
-
FX Rates
September 25, 2019Rates 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 1.0982 GBP/USD 1.2378 USD/CAD 1.3278 AUD/USD 0.6763 USD/JPY 107.53 USD/CNH 7.1277 USD/ILS 3.5012 USD/MXN 19.5697 USD/CHF 0.9874 USD/INR 71.0387
-
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.GBPThe 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.
EURThe 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.
CADThe 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/PACIFICThe 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.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/foreign-exchange
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 Policy. If you have privacy questions, you may contact us at privacy@svb.com. You can withdraw your consent at any time.
Thank you for subscribing to SVB's Daily FX Update.
You’re almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. We also suggest you whitelist the svb.com domain.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
Source: Bloomberg | |
This article is intended for U.S. audiences only. ©2019 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of 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. |