FX Update

Dollar weaker on trade hopes and UK parliament is back

" | 

The dollar sold-off and the British pound jumped as risk-on permeated the world financial markets. China provided waivers to a few US farmers allowing Secretary Munchin to agree to talks on October 7. The UK court found Boris Johnson’s suspension of the UK parliament illegal, further boosting the pound. 

“Wisdom lies neither in fixity nor in change, but in the dialectic between the two
Octavio Paz
  • FX Rates
    September 24, 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 is weaker today as risk-on sentiment sees global investors move back into equities, emerging markets and other risky assets. A combination of seemingly positive developments in the US/China trade war, odds of hard Brexit next month falling, and a new direction in the West’s reaction to Iran’s attack on the Saudi oil refinery all led to the purchases of risky assets. House price data and Consumer Confidence readings due later this morning.


    The pound is stronger today against almost every currency as parliament is to return after court rules Johnson’s suspension illegal. Markets see the move as assurance against a hard Brexit on the Oct 31 deadline. Johnson is now in the unenviable position of having to negotiate for a better Brexit deal – something that drove his predecessor into retirement. Johnson’s brash approach may be just what is needed to push all sides to consider their steadfast positions regarding the Irish border.


    The euro is stronger today on overall US dollar weakness. Economic data continues to come in mixed at best as business sentiment grows in France and sinks in Germany.


    The Canadian dollar strengthened on hopes of a thawing in the global trade war. This despite oil dropping 1% as Saudi supply returns and Europe joins the US in blaming Iran for the attack. It appears the West will pressure Iran for a more stringent nuclear deal, providing relief from the possibility that the US was on the brink of launching an attack on Tehran.


    The Japanese yen weakened due to risk-on market sentiment. Also, the Bank of Japan head, Kuroda, said cutting negative rates and buying more bonds is on the table.
    The Australian dollar strengthened relative to the US dollar on overall dollar weakness. The head of the RBA indicated a rate cut to 0.75% on October 1 may be necessary – in part to keep the A-dollar from appreciating relative to regional peers.

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/trends-insights/foreign-exchange-advisory

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
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.
Upbeat US labor data leading stocks higher, dollar softer
Dollar steady, markets consolidating
Dollar gains on profit-taking of risk assets
China rally fuels global risk-on sentiment, dollar lower
Dollar ends week on back foot
Dollar slides as jobs report surprises