Fear of coronavirus supports risk-off sentiment

News that more nations are struggling to curb the coronavirus is causing markets to shift to risk-off. The US dollar and Japanese yen have outperformed their peers on further signals that the virus is spreading. Reports out of Italy showed Europe’s biggest surge in infections.

Monday: US Chicago Fed Nat Activity
Wednesday: US New Home Sales
Thursday: US Durable Goods Orders, US Initial Jobless Claims
Friday: France CPI YoY, German CPI YoY, Canada Quarterly GDP Annualized

  • FX Rates
    February 24, 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

    The US dollar is outperforming its peers on continued fear of the coronavirus affecting the global economy. The Bloomberg Dollar Index rose to its highest levels since October on Friday.

    Sterling dropped below 1.29 as markets moved to price in a 25 basis point rate cut at the Bank of England’s meeting in November. Previously, the markets were expecting that the central bank would hold rates through 2020.

    EUR/USD fell slightly, trading right above the 1.08 handle. The common currency weakened as core european bonds surged as risk-off sentiment strengthened following a virus outbreak in Italy.


    Fear that the coronavirus would result in a global growth slowdown caused the Canadian dollar to weaken. USD/CAD is up 0.5% trading at highest level since February 11.


    The Japanese yen strengthened from its weakest levels since May, leading the G-10 currencies. The yen fell to low levels last week on fear of a recession in Japan. AUD/USD fell to its lowest levels since March 2009. The Australian government may have to consider coordinating fiscal stimulus if global growth does not rebound.

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
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 surges as economy weakens


Daily FX Update: Dollar up on stimulus news


Daily FX Update: Politics and central banks in focus as dollar climbs


Daily FX Update: Markets stabilizing, dollar and equities steady


Daily FX Update: Dollar firms in a risk-off market, equities lower


Daily FX Update: Non-farm payroll shows first decline since April