Daily FX Update: EUR continues rally as EU moves forward with recovery funding

Cate Camerota

May 20, 2020

EUR continues rally as EU moves forward with recovery funding

The US dollar falls for a third day as oil, gold and stock futures move higher. Despite opposition from Austria and the Netherlands, France and Germany move forward with plans for EU500bn recovery funding. EUR/USD has rallied 1.2% this week as talks of recovery funding are agreed upon by France and Germany. European banks were allotted EU851bn from the ECB as part of a first round of a new liquidity facility.

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FX Rates
May 20, 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 1.0979
GBP/USD 1.2282
USD/CAD 1.3875
AUD/USD 0.6585
USD/JPY 107.5500
USD/CNH 7.1039
USD/ILS 3.5043
USD/MXN 23.3264
USD/CHF 0.9653
USD/INR 75.7975
USD
The US dollar trades lower for a third day as oil and gold strengthen. Broad dollar weakness comes as traders move away from risk-off trading and as stock futures climb.
GBP
Sterling has moved slightly higher trading to a session high of 1.2276. Statements from UK Prime Mister Boris Johnson said that the country is testing more than other European countries and virus tracking will take place in June.
EUR
News of recovery aid and liquidity facilities supported EUR/USD. The currency pair has gained 1.2% this week, trading to a high of 1.0980.
CAD
Higher commodity prices have supported the loonie with USD/CAD down around 0.4%. The currency pair hit a two-week low yesterday of 1.3867.
ASIA/PACIFIC
USD/JPY is trading lower ahead of the Bank of Japan meeting set for tomorrow. Higher oil prices supported commodity-linked currencies including the Australian and New Zealand dollar. NZD/USD rose as much as 0.7%.

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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