U.S. GDP data beat expectations sending the dollar stronger versus G-10 currencies
Kathryn Garvey | November 27, 2019
“Reflect upon your present blessings — of which every man has many — not on your past misfortunes, of which all men have some.”Charles Dickens
Happy Thanksgiving from SVB’s Foreign Exchange team
November 27, 2019
EUR/USD 1.0993 GBP/USD 1.2873 USD/CAD 1.3274 AUD/USD 0.6779 USD/JPY 109.27 USD/CNH 7.0265 USD/ILS 3.4713 USD/MXN 19.5465 USD/CHF 0.9993 USD/INR 71.3587
USDThe dollar again pushed higher verses G-10s driven by more positive talk surrounding the U.S.-China trade dispute and after Q3 GDP estimates came in at 2.1% versus 1.9% expected. Also, US Durable goods rose 1.2%, beating estimates. Jobless claims and home sales are due out later today.GBPThe pound rebounded slightly, mostly driven by election polls and an increase in demand amid month-end flows. Election watchers will eagerly await today’s YouGov MRP poll which projects seat by seat results and is due out tonight GMT.EURThe euro ticked below 1.10 driven by upbeat US data. EURUSD volatility remains near record lows and will continue trading in a tight range in the absence of major shifts such as a change in monetary policy. ECB President Christine Lagarde gave a speech yesterday in which she said the existence of the euro is to secure trust in money so people can focus on what really matters to them.CADThe Canadian dollar rallied slightly and remains steady against the dollar amid risk-on sentiment ahead of US data.ASIA/PACIFIC
JPY slid again versus the dollar as a risk-on attitudes sent investors away from safe-havens and to the soaring equity markets.
The onshore yuan has strengthened for a third session on hopes that the US and China are getting close to inking a Phase 1 deal. Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd., said a trade pact would mean there is no need for a weak yuan to offset tariffs on Chinese products.
For more analysis on FX markets or information regarding SVB's FX services:
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.
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.