Daily FX Update: Markets continue risk-on trading

Cate Camerota

June 17, 2020

Markets continue risk-on trading

Despite concerns of coronavirus spread in Beijing and the US, investors are focusing on stimulus efforts, vaccine progress and re-opening of economies. The US dollar is mixed against its peers while equities continue to be supported. News out of the eurozone showed that Germany’s cabinet accepted a multi-billion euro debt plan and that the country approved human trials for a new vaccine.

“If you are uncomfortable – in deep pain, angry, yearning, confused – you don’t have a problem, you have a life. Being human is not hard because you’re doing it wrong, it’s hard because you’re doing it right. You will never change the fact that being human is hard, so you must change your idea that it was ever supposed to be easy.”

Glennon Doyle

FX Rates
June 17, 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 1.1243
GBP/USD 1.2548
USD/CAD 1.3539
AUD/USD 0.6902
USD/JPY 107.3000
USD/CNH 7.0772
USD/ILS 3.4502
USD/MXN 22.2184
USD/CHF 0.9487
USD/INR 76.1650
USD
The greenback remains largely unchanged with the Bloomberg Dollar Spot Index down less than 0.1%. Federal Reserve Chairman Jerome Powell is due to speak before the House Financial Services Panel later today.
GBP
Inflation data out of the UK was the weakest release since 2016 causing speculation of additional stimulus at the Bank of England’s meeting on Thursday. GBP/USD fell as much as 0.4% before paring losses trading around 1.2565.
EUR
EUR/USD fell as much as 0.4% as traders turn cautious on risk given the surge in corona virus cases in Beijing and the US. The euro leads losses against the USD and remains the biggest loser for G10 currencies.
CAD
The Canadian dollar is holding its ground while risk sentiment remains intact. USD/CAD fell as much as 2% earlier in the trading session and remains slightly lower trading around 1.3545.
ASIA/PACIFIC
USD/JPY remains steady after falling as low as 107.17. The Japanese yen strengthened against the US dollar on concerns of a second wave of the corona virus. Bank of Japan kept its debt purchase amount unchanged.

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.

Source: Bloomberg

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

©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.

The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.

Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.

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.

Global stocks reach all-time highs on strong China GDP, soft US bond yields

Scott Petruska, CFA

Daily FX Update: Lower dollar, higher stocks amid upbeat US earnings & economic data

Scott Petruska, CFA

Daily FX Update: Stocks firm, dollar lower ahead of bank earnings reports

Scott Petruska, CFA

Daily FX Update: CPI exceeds expectations, stocks and dollar mixed

Scott Petruska, CFA

Daily FX Update: Stocks & dollar lower ahead of inflation and retail sales data

Scott Petruska, CFA

Daily FX Update: Treasuries, Dollar tick higher to end week

Kathryn Garvey