U.S. GDP data beat expectations sending the dollar stronger versus G-10 currencies
Kathryn Garvey " | November 27, 2019
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.