FX Update

The dollar rose to its best level in a month against the euro

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The markets were focused on today’s ECB meeting. In the UK, the new PM Boris Johnson has started picking his new cabinet. The dollar remains near two-month highs and trade talks with China are set to resume next week.

"Health is the greatest possession. Contentment is the greatest treasure. Confidence is the greatest friend. Non-being is the greatest joy."
Lao Tzu
  • FX Rates
    July 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 index rose to its highest level since the end of May. Trade talks with China are set to resume on July 30th in Shanghai. Treasury Secretary Steve Mnuchin stated he does not support a weak dollar policy. President Trump said House Republicans should support the proposed two-year budget agreement that will be voted on today.


    With Boris Johnson as the new Prime Minister, 18 of the 29 cabinet ministers were sacked. Replacements are likely to be pro-Brexit. Sajid Javid will be the new Chancellor of the Exchequer (Treasury Secretary) and Priti Patel will be Home Secretary. Look for the focus to return to developments with Brexit after the new cabinet is in place. Boris Johnson was one of the prime Brexiteers, so the odds of a hard exit have risen. The pound is weakening above the 1.2400 support.  


    Mario Draghi, head of the European Central Bank, said the economic slowdown has most negatively affected manufacturing but it is spreading through other areas. He added, “At the same time, the euro area services and construction sectors are resilient”. The prospect of more monetary stimulus after the summer is almost certain with one or more 25 basis point cuts this year. German IFO Business Climate, Expectations and Current Assessment all fell. Draghi also said the ECB does not target exchange rates. The euro rose on the news.

    The Canadian dollar is tracking sideways inside yesterday’s range. The CFIB Business Barometer fell to 57.8 from 61.5 in July. The CAD has lost a cent against the USD this week. 
    North Korea heightened geopolitical tensions by firing off two missiles that landed in the sea. The actions did not upset the area stocks which ended higher following yesterday’s trend.
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Laurence Hayward
Laurence Hayward

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