Markets quiet with focus on vaccine news

The US dollar is largely unchanged overnight as global bond yields edged lower and global equities moved slightly higher. Investors continue to focus on recent upbeat vaccine news. Pfizer’s claims that their vaccine is 95% effective with no big safety issues may position it well for US regulatory approval before long. The UK pound is higher for the fourth straight day on hopes of a Brexit deal shortly. This morning’s release of US Housing Starts for October exceeded expectations and reached its highest level since February.

“Success is not final; failure is not fatal: it is the courage to continue that counts.”
Winston S. Churchill
  • FX Rates
    November 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

    The dollar moved in a narrow range overnight. The dollar index sits fairly close to yesterday’s NY close, and remains near two-year lows. The New Zealand dollar showed the biggest move vs. the USD, strengthening by only 0.33%. The dollar did move off earlier lows following upbeat US Housing Starts.  

    GBP

    The UK pound rallied for the fourth day, as hopes grow of a Brexit deal as early as next week. Inflation came in higher than expected: October CPI rose 0.7% YoY vs. expectations of 0.5%, and the Retail Price Index rose 1.3% vs. 1.2% YoY.

    EUR

    The euro changed little overnight, but remains within striking distance of key $1.19 resistance. There are no expected events in Europe this week that would trigger a move above that level. Eurozone CPI for October came in exactly as expected, +0.2% MoM and -0.3% YoY.

    CAD

    The Canadian dollar changed little overnight, despite higher inflation data: October CPI was 0.7% vs. expectations of 0.4%. Bank of Canada’s Senior Deputy Governor Carolyn Wilkins speaks today.

    ASIA/PACIFIC

    Japan’s Nikkei 225 stock market index fell by over 1% following reports of a record number of new Covid-19 cases in Japan.

    After early strength, the Chinese yuan sold off as traders began to focus on technical signals that the rally in the CNY was overdone. China’s currency has gained 8.5% over the past six months, the most in Asia after the South Korean won.

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.

Scott Petruska, CFA
WRITTEN BY
Scott Petruska, CFA

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.

Dollar heavy in thin trading

 

Daily FX Update: Currencies confined to narrow range ahead of Thanksgiving holiday

 

Daily FX Update: Risk-on sentiment persists

 

Daily FX Update: Dollar falls to two-year lows amid month-end flows and vaccine optimism

 

Daily FX Update: Stocks and bonds mixed, dollar up slightly, copper soars

 

Daily FX Update: Dollar gains with focus on new virus restrictions