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.

“You are free to let go of how you thought things would be and you are free to try again and have peace even though the future might look different.”
Morgan Harper Nichols
  • 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.


  • 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.
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.
Upbeat US labor data leading stocks higher, dollar softer
 
Dollar steady, markets consolidating
 
Dollar gains on profit-taking of risk assets
 
China rally fuels global risk-on sentiment, dollar lower
 
Dollar ends week on back foot
 
Dollar slides as jobs report surprises