EUR rallies, testing the 1.20 level

The US dollar hit two-year lows as investors shifted to risk-on trading. Data out of China beat estimates signaling an economic recovery in the country. The Chinese yuan hit levels not seen in over a year. EUR has strengthened on broad dollar weakness and hovered around the 1.20 level. Commodity prices remain strong supporting the lower dollar.

“The thrill of not knowing what’s going to happen, trained me to be prepared for anything.”
Ariana Grande
  • FX Rates
    September 1, 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
    Markets shift to risk-on sentiment following data out of China showing the Purchasing Managers Index beat estimates. The US dollar has weakened across the board as investors seek risk assets.
    GBP
    Sterling pushes higher as the USD weakens against its peers. GBP/USD climbed as much as 0.5% hitting a fresh year-to-date high of 1.3442.
    EUR
    EUR/USD strengthened as much as 0.5% hitting a high of 1.1997. The currency pair is trading at its strongest levels since May 2018. The momentum technical indicator remains supportive of additional gains for the common currency.
    CAD
    The loonie is on track for a sixth day of gains as the rally in risk assets extends after data released from China beat expectations. USD/CAD briefly broke below the 1.30 level for the first time since January 8.
    ASIA/PACIFIC

    News out of China signaled optimism over Asia’s economic recovery and resulted in the Chinese yuan hitting highest levels in over a year. The currency continued to advance despite China’s central bank’s decision to set its daily currency fixing at levels weaker than investor expectations. The Chinese yuan has surged more than 5% from this year’s low in May and is the best performing currency in Asia.

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 PrivacyOffice@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.

Daily FX Update: Dollar falls to two-year lows amid month-end flows and vaccine optimism

 

Daily FX Update: Stocks and bonds mixed, dollar up slightly, copper soars

 

Daily FX Update: Dollar gains with focus on new virus restrictions

 

FX Daily Update: Markets quiet with focus on vaccine news

 

Daily FX Update: Markets retreat, retail sales disappoint

 

FX Daily Update: Positive vaccine and lockdown news buoys markets