Equities lower on break from rally, dollar edges higher

European equities fell and US stocks are opening lower as investors take a break from the recent rally. US Treasury yields are lower and the dollar made gains for the first time in a week. The euro gave way to its long advance and emerging market currencies ended an eight-day rally. Traders await tomorrow’s Fed policy meeting, with no change expected.

“Injustice anywhere is a threat to justice everywhere.”

Martin Luther King Jr.
  • FX Rates
    June 9, 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

    In quieter trading, the US dollar edged higher as a drop in risk sentiment moved funds into safe-haven currencies. Traders await the Fed’s next policy decision tomorrow – rates are expected to remain unchanged and above zero. Investors look forward to the OECD’s bi-annual report tomorrow of its economic outlook for member nations.

    GBP

    The UK pound dropped by 0.4% as it takes a break from recent strength. The UK pound is highly sensitive to changes in market sentiment given the UK-EU post-Brexit trade negotiations have stalled and the upcoming deadline for Britain to request an extension to the Brexit transition period.

    EUR

    The rise in the euro is slowing down, and is little changed overnight. Traders are digesting Germany’s sharp fall in industrial production for April, its worst month ever for the German economy. Traders await the eurozone finance ministers' meeting on Thursday to discuss the EU’s recovery package.

    CAD

    The USD/CAD currency pair edged higher, but remains below C$1.35 amid renewed demand for the US dollar and steady oil prices after Saudi Arabia said it would stop extra voluntary production cuts by the end of the month.

    ASIA/PACIFIC

    The USD/Chinese yuan currency pair held under 7.09 as emerging market assets remain well bid in the ongoing risk-on sentiment. Oil prices and commodity currencies remain near recent highs, supported by the OPEC+ decision to extend production cuts.

    The Japanese yen strengthened as investors remain concerned about tensions between US and China, particularly following rumors that President Trump may sign the Uyghur Human Rights Policy Act, which will sanction several high-ranking Chinese officials.

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Scott Petruska, CFA
WRITTEN BY
Scott Petruska, CFA

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