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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.
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FX Rates
April 6, 2020Rates 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 1.0776 GBP/USD 1.227 USD/CAD 1.4163 AUD/USD 0.6070 USD/JPY 109.06 USD/CNH 7.1102 USD/ILS 3.6080 USD/MXN 24.9725 USD/CHF 0.9790 USD/INR 75.96
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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%.
GBPSterling 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.
EURAfter 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.
CADOil 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/PACIFICA 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.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory