Investors move to risk-on trading as oil bounces back and US stock futures strengthen

Commodity-linked currencies rallied after oil prices rose above $30 per barrel for the first time in two months. Australian dollar and Norwegian krone are trading around 0.5% higher. Investor risk appetite was also supported by the move higher for US equity futures.

Tuesday: US Housing Starts

Wednesday: UK, CAN, EU - CPI YoY

Thursday: EU, UK Manufacturing PMI, US Initial Jobless Claims

Friday: UK, CAN Retail Sales

  • FX Rates
    May 18, 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
    US dollar is lower across the board as the market moves to risk-on trading. The oil rally has pushed commodity-linked currencies higher after signals from China show that demand is recovering.
    GBP
    Sterling weakened after Bank of England Chief Economist Andrew Haldane spoke to the Telegraph and stated that the bank is exploring unconventional monetary policy strategies including negative interest rates. GBP/USD has since bounced back following greater market risk sentiment.
    EUR
    EUR/USD continues to trade within the 1.08 handle, hitting a daily high of 1.0844 after surge in US equity futures causes investors to move to risk-on sentiment. European Central Bank Governing Council member Pablo Hernandez de Cos spoke to the Spanish parliament stating that while the economic crisis caused by coronavirus is temporary, it will most likely last longer than initially anticipated.
    CAD
    Oil prices rose above $30 per barrel for the first time in two months supporting commodity currencies including the Canadian loonie. USD/CAD is trading right above the 1.40 level.
    ASIA/PACIFIC

    The Japanese yen has maintained a slow and steady gain against the USD strengthening against the greenback 1.5% YTD. Amidst the coronavirus pandemic, the safe haven currency has appealed to global investors. The currency has also benefited from expectations that the US central bank may take steps towards unprecedented monetary easing which could weaken the US dollar.

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Cate Camerota
WRITTEN BY
Cate Camerota

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