Daily
FX Update

EUR trades above $1.10 while risk-on sentiment continues to drag on USD

" | 

Optimism continues for a partial trade deal from US-China trade talks. USD and other haven currencies continue to be weighed-down by this sentiment while EUR and GBP are higher this morning. EUR/USD trades at best levels in two weeks, above the 1.10 handle.

“Life starts all over again when it gets crisp in the fall.”
F. Scott Fitzgerald
  • FX Rates
    October 10, 2019

    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

    US dollar continues its decline as trade talks between the US and China advance. The market is optimistic that these conversations will result in a partial trade deal including the US potentially rolling out a previously agreed-on currency pact with China.  

    GBP

    Sterling started slightly higher in today’s trading session, staying above the $1.22 level. The market is modestly optimistic about a meeting today between UK Prime Minster Boris Johnson and Irish counterpart Leo Varadkar that could shape the future Brexit deal.

    EUR

    EUR rallies for a second day gaining as much as 0.5%, trading to the $1.1020 level. Later today, the ECB will publish its September meeting minutes. A report from the Financial Times states that Mario Draghi ignored internal advice to restart quantitative easing.

    CAD

    The Canadian dollar strengthened as the market focuses on trade negotiations between the US and China. Higher WTI crude oil (up 0.7% at $52.95/bbl) also supports the loonie.

    ASIA/PACIFIC

    The Japanese yen gained earlier in the session. The currency relinquished some of these gains after a report stating that trade talks between the US and China were cut short, was denied. The Chinese official, Liu He, who is leading the high-level trade talks is expected to stay in Washington through Friday.

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.

Daily FX Update: Dollar mixed in quiet markets ahead of the weekend

 

Daily FX Update: Dovish Fed comments support dollar, equities trade lower

 

Daily FX Update: Dollar lower on expectations of dovish Fed today

 

FX Daily Update: Dollar lower and markets risk-on as Empire manufacturing beats expectations

 

FX Daily Update: Dollar weaker amid risk-on trading

 

FX Daily Update: Dollar weaker as equities rebound