Daily
FX Update

The dollar is strong today; Boris Johnson’s request to suspend parliament sinks the pound

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The USD and the pound are having a good day at the expense of the minor currencies. The yuan weakening to above 7 is putting pressure on emerging market currencies. The pound took a dive this morning after PM Johnson asked the Queen to suspend parliament next month, thus increasing the odds of a potential no-deal Brexit.

"We could never learn to be brave and patient, if there were only joy in the world."
Helen Keller
  • FX Rates
    August 28, 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 strengthened today. Ex former Fed President William Dudley said the Central Bank should reconsider its apolitical approach. FOMC members Daly and Barkin are scheduled to speak today.  The yield curve inverted yesterday with the 2 year higher than the 10 year. This is traditionally viewed as a pre-cursor to a recession.

    GBP

    Boris Johnson has asked the Queen to suspend parliament to avoid a confrontation over a no deal Brexit. The opposition parties met to talk about trying to set up a legal barrier to a no-deal Brexit when parliament starts its new session next week. After strengthening to its strongest level since the beginning of August yesterday, the pound dipped on Boris Johnson’s comments.

    EUR

    ECB Vice President de Guidos said the ECB should take market expectations “with a pinch of salt”. Saying the “ECB’s monetary policy is data dependent, not market dependent”. The euro is weaker.

    CAD

    The Canadian dollar strengthened as WTI oil climbed after falling yesterday.

    ASIA/PACIFIC

    China introduced a number of measures to try and increase consumer spending and called for exporters to move their focus to producing products they can sell in their domestic market. The yuan weakened. The confusion over trade talks with China continues after Trump comments.

    Reserve Bank of Australia deputy Governor Guy Debelle said the weakening Aussie dollar was helping the economy and that further falls would be beneficial.

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Laurence Hayward
WRITTEN BY
Laurence Hayward

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