Get started with SVB

Are you an innovation company or investor seeking banking services to help you move bold ideas forward, fast?

Let's get started

Existing SVB clients

Get quick answers from our support page.

For help with commercial cards
1.866.553.3481
cardservices@svb.com

For other questions contact Client Service:

1.800.774.7390
clientservice@svb.com

Find a location

Technical or site issue?

Daily
FX Update

FOMC rate decision on Wednesday and jobs data on Friday weigh on dollar

" | 

The Federal Reserve is widely expected to cut interest rates this Wednesday and jobs data is expected to be weak (85K). But the main driver of US dollar weakness this morning is general risk-on sentiment as equities point toward record highs.

Data for this week:

Tuesday: S&P House Price data for August and Pending Home Sales for September

Wednesday: Q3 GDP, FOMC rate decision

Friday: Nonfarm Payrolls for October, Wage data and ISM for October

  • FX Rates
    October 28, 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 US dollar has lost 1.6% vs. a basket of currencies since the start of the month. The weakness will very likely continue this week with the Fed expected to cut rates and jobs data to be negatively impacted by the General Motors strike. Risk sentiment has been positive in October as the US and China seem to be moving toward a resolution to the trade war and a hard Brexit looks much less likely.

    GBP

    The British pound is up slightly vs. the US dollar in volatile trading.  The European Union has granted the UK a Brexit extension until January 31. Prime Minister Boris Johnson is expected to press the UK parliament today for a vote on an early election. The chances of a hard Brexit have diminished significantly over this month with the pound up 5% vs. the US dollar.

    EUR

    The euro is slightly stronger today on general US dollar weakness.  The European Central Bank says goodbye today to Mario Draghi who steps down as President being replaced by Christine Lagarde. Draghi served for 8 years and is credited with saving the euro during the European debt crises of 2012 when he vowed to do “whatever it takes” and stating the euro was “irreversible”. 

    CAD

    The Canadian dollar is slightly weaker today as oil prices dip. This Wednesday, the Bank of Canada  is expected to keep rates on hold.  Should the US Federal Reserve cut rates on Wednesday, as expected, the benchmark rate for both countries will be 1.75%, providing lift to the loonie as rates in the US are expected to be cut further in December and/or 2020.

    ASIA/PACIFIC

    The Japanese yen lost ground, as most safe-haven currencies and assets gave in to today’s risk-on sentiment. Earnings season has generally been positive in the US and trade war tensions have calmed.

    The Australian dollar is flat this morning as FX traders await clarity from the FOMC and other economic data expected later this week.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/foreign-exchange

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at privacy@svb.com. You can withdraw your consent at any time.

Peter Compton
WRITTEN BY
Peter Compton

Insights from SVB Industry Experts

 
SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.
Greenback comes off 1-week high
 
Dollar up despite weak jobs report
 
Dollar steady after massive job cuts
 
Risk aversion returns helping dollar
 
Dollar gains on quarter-end demand
 
Dollar gains after 5 days of losses
 
Now Let's Get Started
 

See how SVB makes next happen now for entrepreneurs like you.

Connect with Us