Daily FX Update: Market moves to risk-on after news of US government stimulus

Cate Camerota

June 16, 2020

Market moves to risk-on after news of US government stimulus

The US dollar weakened as traders moved to risk-on assets following news that the US government is evaluating a $1 trillion infrastructure proposal. US Retail Sales were released better than expected at 17.7% vs. 8.4%. Fed Chair Jerome Powell is due to speak at 10am via video conference before the Senate Banking Committee.

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FX Rates
June 16, 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.

EUR/USD 1.1274
GBP/USD 1.2623
USD/CAD 1.3535
AUD/USD 0.6926
USD/JPY 107.4000
USD/CNH 7.0767
USD/ILS 3.4563
USD/MXN 21.9713
USD/CHF 0.9496
USD/INR 76.2100
USD
Investors moved towards risk-on sentiment after news that the US government is evaluating a $1 trillion infrastructure proposal. The USD fell as much as 0.4% as stocks rallied.
GBP
Sterling strengthened after positive commentary around Brexit negotiations renewed hope that a deal can be reached. GBP/USD moved 0.3% higher trading up to 1.2688.
EUR
EUR/USD broke above the 1.13 handle hitting a high of 1.1353 before reversing gains. The currency pair fell to a day’s low of 1.1270 as US yields rose.
CAD
USD/CAD remains largely unchanged as renewed hopes for additional US fiscal stimulus boost market risk sentiment. Investors will focus on commentary from the Bank of Canada Governor Tiff Macklem and testimony by Fed Chair Jerome Powell.
ASIA/PACIFIC
USD/JPY gained slightly currently trading around 107.40. The Bank of Japan met overnight and announced that it would leave its main monetary policy the same and review the size of its response measures to the virus, assuring to do more if needed.

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

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Cate Camerota

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