Daily FX Update: Optimism for coronavirus vaccine supports risk-on trading

Cate Camerota

May 19, 2020

Optimism for coronavirus vaccine supports risk-on trading

News from Moderna Inc. stated that their experimental vaccine for coronavirus showed early signs of promise. In reaction to this news, markets moved towards risk-on and the US dollar weakened across the board.

“With the new day comes new strength and new thoughts.”

Eleanor Roosevelt

FX Rates
May 19, 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 1.0935
GBP/USD 1.2242
USD/CAD 1.3913
AUD/USD 0.6545
USD/JPY 108.00
USD/CNH 7.1165
USD/ILS 3.5207
USD/MXN 23.5046
USD/CHF 0.9708
USD/INR 75.6413
USD
The US dollar is weaker against its peers following positive news from Moderna Inc. that their experimental vaccine showed promise against the coronavirus. Later today, Federal Reserve Chair Jerome Powell will give testimony before the Senate Banking committee.
GBP
Sterling strengthened following news that the UK plans to cut tariffs on many products after it splits from the European Union. GBP/USD hit a high of 1.2268.
EUR
EUR/USD experienced its third day of advances climbing to a high of 1.0976. The common currency strengthened after news that Germany and France agreed to a 500 bn euro aid package to support the EU’s economic recovery from the pandemic.
CAD
USD/CAD trades lower breaking through 1.40 and hitting one-week low of 1.3905. The Canadian dollar has been supported by coronavirus vaccine optimism and higher oil prices with June WTI contract up 1.8%.
ASIA/PACIFIC
USD/JPY hit a weekly high of 107.95. The Japanese yen has been under pressure as investors speculate that the Bank of Japan will hold an unscheduled meeting on May 22.

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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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