Dollar weaker after gains earlier in the week as sentiment turns positive despite Covid headwinds.

Dollar weaker after gains earlier in the week as sentiment turns positive despite Covid headwinds.

The dollar lost ground to both higher risk emerging market currencies and safe haven yen and Swiss franc. Equity markets are set to rise in the US as global investors continue to favor risk-on strategies despite warnings by central bankers at yesterday's ECB Forum that Covid will continue to be a drag on the global economy well into 2021.

The greatest glory in living lies not in never falling, but in rising every time we fall.”
Nelson Mandela
  • FX Rates
    November 13, 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 US dollar is weaker this morning after rising for most of the week. PPI for October came in slightly lower than expected. Speaking at the ECB virtual conference yesterday, Fed Chair Powell raised concerns over the recovery of the US, as Covid-19 cases continue to rise and a divided government is likely to delay or reduce any fiscal stimulus agreement.


    The pound is ending the week flat as financial markets discount impacts of Covid and trade talks. GBP is up 2% this month vs. the USD.

    Bank of England head Andrew Bailey has confirmed that there is no exact date in mind when negative rates may be used and that a significant amount of work would need to be done to determine whether it would be “doable”. Dominic Cummings, who helped orchestrate the Brexit vote in 2016, last night confirmed that he will be leaving his role by the end of the year.


    The euro is slightly stronger this morning but lost ground to the dollar over this past week. Brexit negotiations seem to have once again reached a stalemate as fundamental differences around access to the single market remain. Officials suggest that an agreement must be reached next week to ensure it can be ratified by year end. Speaking at the ECB Forum on central banking yesterday, President Lagarde cautioned that a coronavirus vaccine will not quickly reverse any economic downturn.


    The Canadian dollar is heading for its fourth consecutive day of losses despite oil prices increasing 8% this week. Still, the loonie is 1.4% stronger this month with oil up almost 20%. The price of oil has been stable since June trading in a range between $35-$42 per barrel. The C-dollar has strengthened over the same period from around 1.35 to 1.31, mostly due to overall US dollar weakness.


    The yen made gains against the US dollar as a new wave of coronavirus cases across the globe increased demand for the safe haven currency. 

    The Chinese renminbi was steady for the week holding onto last week's gains. The renminbi is expected to continue its strengthening trend which began in June as the Chinese economy has resumed growth after the initial Covid shock. Also, a Biden presidency is presumed to be less prone to anti-China outbursts.

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
See all of SVB's latest FX information and commentary at

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 You can withdraw your consent at any time.

Peter Compton
Peter Compton

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.

Market risk appetite boosts commodity-linked currencies


US dollar reversed two-day decline following broader risk sentiment


Daily FX Update: USD remains under pressure as markets maintain risk appetite


Daily FX Update: Risk-on trading supports commodity-linked currencies


Daily FX Update: Inflation concerns push the USD higher


Dollar gains vs. other safe havens