Demand for safe havens slide and commodity-linked currencies rise

Amid signs that the fatality rate in Spain, Italy and France are slowing, demand for risk-sensitive commodity currencies rose and outperformed against safe havens.  

**JOIN US**
For a live video event - COVID-19 and Currency risk: Act or wait?
Thursday, April 9 at 10:00a PT/1:00p ET
Register here

 

  • FX Rates
    April 6, 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

    After rising half a percent in early trading, the dollar pared gains as risk appetite returned and commodity currencies gained. The greenback is up 0.1%. 

    GBP

    Sterling initially gave up 0.5% following news that Boris Johnson was taken to this hospital as he fights the coronavirus. A return in risk appetite on evidence of slowing coronavirus spread throughout Europe allowed the pound to recoup losses and gain 0.2% versus the dollar.

    EUR

    After a week-long decline, the euro is finding stability around the 1.08 level. Signs of a slowing virus death rate in the eurozone have returned some optimism to markets.

    European leaders are set to meet tomorrow to reach consensus for an EU-wide bailout. Spain is said to be rolling out Universal Basic Income soon.

    CAD

    Oil prices pared losses of nearly 11% and are posting a net price increase amid signs that Saudi and Russia are making progress on an agreement to curb oil output. The loonie advanced on higher oil prices and increased risk appetite.

    ASIA/PACIFIC

    A slip in safe haven demand dropped the yen as PM Shinzo Abe rolled out a two phase stimulus package which will put Tokyo and six other economic hubs in a state of emergency. The USD/JPY pair climbed as high as 1.0938 – a two week high.  

    The Australian dollar led G-10 advances versus the dollar gaining as much as 1.3% to 0.6076.

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.

Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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.

Daily FX Update: Dollar higher amid new European lockdowns and restrictions

 

Daily FX Update: Dollar lower before central bank meetings

 

Dollar higher amid rise in coronavirus cases, stimulus stalemate

 

As risk appetite grows dollar weakens

 

Daily FX Update: Dollar stronger on global Covid surge

 

Daily FX Update: Dollar weaker for fourth day