Dollar stronger to begin week

Kathryn Garvey

October 13, 2020

Dollar stronger to begin week

The dollar is stronger against all G-10 currencies with the exception of the Swedish krona, kiwi and loonie. In focus this morning are weaker equities, a halt in COVID-19 vaccine trials, the beginning of earnings season and continued gridlock in US stimulus efforts. Supreme Court nominee Amy Coney Barrett will be questioned before the Senate Judiciary Committee today.

Please be sure to review our most recent research material below:

Use FX budget rates to improve global FP&A: https://www.svb.com/blogs/ivan-asensio/use-fx-budget-rates-to-improve-global-fpa

Lease reporting rules force private companies to adapt:

https://www.svb.com/blogs/ivan-asensio/lease-reporting-rules-force-private-companies-to-adapt

FX Rates
October 13, 2020

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.

EUR/USD 1.1759
GBP/USD 1.2969
USD/CAD 1.314
AUD/USD 0.7169
USD/JPY 105.62
USD/CNH 6.7388
USD/ILS 3.3865
USD/MXN 21.3263
USD/CHF 0.9125
USD/INR 73.3463
USD
The dollar rose ahead of inflation data which showed CPI increased 0.2% - the slowest pace in four months. Equities started the week slowly with yesterday’s Columbus Day holiday as earnings season commences. Supreme Court nominee Amy Coney Barrett’s confirmation hearing will continue today.
GBP
The pound gave up some territory after a report revealed only minimal progress has been made in Brexit negotiations. The BoE questioned UK banks if they are ready to accommodate negative interest rates around the end of next year. UK unemployment data showed softening conditions and a new three-level COVID alert system continues to impose restrictions on businesses.
EUR
The euro was put under pressure amid softer than expected German ZEW figures that showed a drop in Economic Sentiment in October. The EUR/USD pair hovers near 1.1800 awaiting some directional strength.
CAD
The loonie was steady against a strong greenback helped by an advance in oil prices.
ASIA/PACIFIC
The Japanese yen slipped slightly in light volumes. The Chinese yuan rose after PBOC set the fixing rate in-line with expectations, easing concerns that China is aligning for a weaker yuan.

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

Source: Bloomberg

This article is intended for U.S. audiences only.

©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and 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.

WRITTEN BY

Kathryn Garvey

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.

Global stocks reach all-time highs on strong China GDP, soft US bond yields

Scott Petruska, CFA

Daily FX Update: Lower dollar, higher stocks amid upbeat US earnings & economic data

Scott Petruska, CFA

Daily FX Update: Stocks firm, dollar lower ahead of bank earnings reports

Scott Petruska, CFA

Daily FX Update: CPI exceeds expectations, stocks and dollar mixed

Scott Petruska, CFA

Daily FX Update: Stocks & dollar lower ahead of inflation and retail sales data

Scott Petruska, CFA

Daily FX Update: Treasuries, Dollar tick higher to end week

Kathryn Garvey