Markets ignore weak GDP reading in favor of risky assets on positive news of the anti-viral drug remdesivir

• FX Rates
  April 29, 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.

  EUR/USD	1.0864
  GBP/USD	1.2445
  USD/CAD	1.3931
  AUD/USD	0.6527
  USD/JPY	106.59
  USD/CNH	7.0830
  USD/ILS	3.5041
  USD/MXN	24.1735
  USD/CHF	0.9718
  USD/INR	75.68

  
  
• USD

  The dollar is weaker on positive risk sentiment as more countries announce plans to begin reopening their economies – albeit slowly. The dollar is still 5% higher than pre-COVID levels.

  The anti-viral drug, remdesivir, showed it met its primary endpoint during a government study. Although the complete data has not been released, the news led investors to speculate the drug trial results will allow the US economy to return to full strength soon.

  GBP

  The pound strengthened relative to the US dollar after a weaker than expected US GDP reading. The pound had been weaker due to a general perception that the UK lacks COVID testing capabilities relative to its European neighbors and therefore will be delayed in re-opening its economy.

  EUR

  The euro is stronger as speculators bet on a “V” shaped economic recovery after more countries begin to ease lock-down restrictions. The euro strengthened despite Fitch downgrading Italian sovereign debt.

  CAD

  The Canadian dollar gained on overall positive sentiment that global economies will be re-opening soon. Oil is stronger on specific details of a Russian oil output cut of 19% in response to OPEC+ reductions.

  ASIA/PACIFIC

  The Japanese yen lost ground versus the US dollar after encouraging news on the anti-viral drug remdesivir. 

  The Aussie dollar continued its march higher against the US dollar on overall USD weakness and increase in the price of oil.

  Most all Asian currencies benefited from overall risk-on sentiment.