ECB keeps rates on hold; appetite for safe haven assets continues

European Central Bank rates go unchanged which was expected by the markets. The Canadian dollar remains weak following a statement from Governor Stephen Poloz yesterday which alluded to potential rate cuts. China attempts to contain a deadly respiratory virus - the threat of spreading has supported safe haven assets including the Japanese yen.

"Fortune does favor the bold and you'll never know what you're capable of if you don't try."
Sheryl Sandberg
  • FX Rates
    January 23, 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 dollar is trading higher versus most peers. Jobless claims data showed that the number of Americans applying for unemployment benefits rose less than expected. This supports the view from the Federal Reserve that the US jobs market remains tight.
    GBP
    Sterling remains largely unchanged trading within the 1.3100 handle. The market will remain focused on PMI data due to be released on Friday which could signal potential interest rate cuts.
    EUR
    European Central Bank released decision that rates will remain unchanged. The currency pair remains largely unchanged trading within a range of 1.1079 – 1.1109.
    CAD
    Bank of Canada Governor Stephen Poloz stated yesterday that the central bank may look to ease policy in order to counter a slowing economy. The Canadian dollar has weakened for the third day with USD/CAD trading at a high of 1.3172.
    ASIA/PACIFIC
    The Japanese yen strengthens on fears of the respiratory virus in China spreading. China is trying to lock down the city of 11 million people in order to contain the virus that has already killed 17 people.
    Data out of Australia showed that unemployment declined unexpectedly. The currency pair is up 0.5% after the data. The report showed that unemployment declined to 5.1% vs. the expectation of remaining steady at 5.2%. The market is now pricing in just a 25% chance of a rate cut at the Reserve Bank of Australia’s meeting next month.
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.

Cate Camerota
WRITTEN BY
Cate Camerota

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.
Dollar slides as markets await Trump’s China comments
 
Positive economic outlook prevails as dollar weakens
 
Dollar inches up on US/China concerns
 
Dollar falls to lowest since March
 
Dollar strengthens as US-China tension becomes focus
 
US dollar advances for first time this week