Risk-on sentiment hit the dollar as new virus cases in Europe seem to be slowing leading to speculation economic activity has bottomed

Currency markets begin to price in a return of some economic activity even as economic data this week will show the worst hit to the US economy since the Great Depression.

Economic Data for this Week:

Monday: Dallas Fed Mfg Activity for April

Tuesday: Consumer Confidence for April, Richmond Fed Mfg Index for April

Wednesday: Q1 GDP (survey -3.9%), FOMC rate decision, Mortgage applications and Home sales for April

Thursday: Initial Jobless Claims (survey -3.5 million), Personal Spending and Core PCE for March

Friday: Markit Mfg PMI and ISM for April, Construction spending for March

  • FX Rates
    April 27, 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.

  • USD

    The US dollar lost ground to start the week as financial markets became optimistic as new coronavirus cases slowed in many European countries.

    The FOMC meets later this week for a regularly scheduled meeting. During the press conference that follows, investors will look for clues of additional measures to be launched by the Fed in support of the economy.


    The British pound is stronger as Prime Minister Boris Johnson returns to work after being hospitalized with COVID. The FTSE 100 jumped almost 2% as investors speculate the UK economy will begin to reopen.


    The euro was only able to gain slightly vs the US dollar despite positive sentiment in equity markets on the easing of the lockdown in some countries. The ECB meets Thursday but financial markets are not expecting anything new. 


    The Canadian dollar strengthened but remains above the 1.40 level. The price of oil remains weak and market experts expect oversupply to begin forcing the closure of crude production by mid-May.


    Japan's emergency measures have been expanded to the national level and more stimulus has been announced by the Bank of Japan. The yen strengthened on the news.

    Asian currencies all strengthened some relative to the US dollar on overall dollar weakness. However, the Indian rupee remains at close to its all-time weakest levels relative to the dollar. 

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Peter Compton
Peter Compton

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