EUR rallies, testing the 1.20 level

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.

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  • 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.
    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/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.
    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.

    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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Cate Camerota
Cate Camerota

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