FX Update

The US dollar gave back some of Friday’s gains as positive trade sentiment lifts stocks

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FX markets are selling long dollar positions as optimism on global trade deals leads to risk-on trading.  US economic data this week may be overshadowed by traders' positioning for year-end.

Monday: PMI for December
Tuesday: Housing Starts for November, Industrial Production for November
Thursday: Philly Fed survey for December, Existing Home Sales for November
Friday: Q3 GDP, PCE for November, Univ. of Michigan Consumer Confidence survey for Dec.

  • FX Rates
    December 16, 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 gave back much of last Friday's gains after a general risk-on sentiment led to sales of long US dollar speculative positions. Treasury Secretary Mnuchin said that when Iran is ready, the US will look to take sanctions off the table. US manufacturing, services and composite PMI data is released later this morning.


    The British pound is flat vs. the US dollar after touching a high of 1.34 earlier in London trading. Manufacturing and services PMI data for December came in worse than expected. PM Johnson will appoint new ministers to his cabinet today following the Conservatives' biggest win since Margaret Thatcher took office. The government will not grant a second referendum on Brexit and the intention is to bring the Brexit withdrawal bill back to Parliament before Christmas.


    The euro is stronger again today and has gained 1.2% this month despite weaker than expected French manufacturing data for December. French President Macron, notwithstanding nationwide protests, has reaffirmed his support for reforming France's pension system. A potential trade war between Germany and China seems a possibility after the Chinese ambassador to Germany threatened Berlin with retaliation if it excludes Huawei as a supplier of telecoms equipment.


    The Canadian dollar strengthened significantly vs. the US dollar on positive sentiment for trade. A general risk-on trading day and steady oil and gold prices are helping the loonie to a six-week high.


    The Japanese yen is weaker for the third day in a row on positive sentiment for global trade.
    The Indian rupee sold-off after hitting the strongest level vs. the US dollar since September. FX traders are expecting less rupee buying as the end of year approaches.

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Peter Compton
Peter Compton

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