Daily
FX Update

Dollar weak as traders await Saturday’s historic Brexit vote by Parliament

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October’s sell-off in the dollar continued, as the index approaches its weakest level since July. Traders await Saturday’s UK Parliament Brexit vote where there is no clear outcome. Tariffs on EU goods take effect today. China’s economy grew at the slowest pace in more than 27 years. 

“When you’ve seen beyond yourself, then you may find, peace of mind is waiting there.”
George Harrison
  • FX Rates
    October 18, 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 downtrend in October remains intact as the index approaches its lowest levels since July. Liquidity is tightening up as traders await the Brexit vote on Saturday, which may impact all markets.

    GBP

    The UK pound was range-bound overnight, yet is poised for a third week of gains. Traders await Parliament's vote Saturday on PM Boris Johnson’s deal  with the EU, while markets prepare for a potentially volatile beginning late Sunday when Asian markets open.

    EUR

    The euro is playing catch-up with the pound’s recent surge, and now approaches three-month highs. There is little eurozone economic data on the docket today. US tariffs take effect today on specialty EU agriculture/food products, like French wine, Italian cheese and Spanish olives.

    CAD

    The Canadian dollar moved little overnight as we approach Canada’s October 21 general election. Election results are uncertain, and it’s doubtful that any party will be able to form a majority government. Economic impacts from the election are decidedly unclear, and traders are becoming increasingly pessimistic.

    ASIA/PACIFIC

    The Chinese yuan weakened slightly following release of China’s Q3 GDP data. GDP growth of 6.0% met expectations, but more importantly, it did not drop below 6%. A more negative view on global trade will follow a drop below 6%, which traders expect to see next year.
    The Australian dollar hit fresh one-month highs, despite China’s weak GDP. Traders continued to unwind overly short positions following recent strong Aussie job data.

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Scott Petruska, CFA
WRITTEN BY
Scott Petruska, CFA

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