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.
September 1, 2020
EUR/USD 1.1995 GBP/USD 1.3463 USD/CAD 1.3034 AUD/USD 0.7388 USD/JPY 105.84 USD/CNH 6.8209 USD/ILS 3.3510 USD/MXN 21.7111 USD/CHF 0.9064 USD/INR 72.8712
USDMarkets 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.GBPSterling 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.EUREUR/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.CADThe 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.
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