Daily FX Update: Pound gains on Brexit headlines; dollar weaker

Kathryn Garvey

October 14, 2020

Pound gains on Brexit headlines; dollar weaker

The UK pound is the big story this morning as the currency leads G-10 gainers on Brexit headlines. PM Johnson is expected to continue talks past the previous 10/15 deadline. The dollar slides versus all major peers amid tentative risk on markets. Earnings season continues today and markets will continue to focus on bank earnings.

"Fortune befriends the bold."

Emily Dickenson

FX Rates
October 14, 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 1.1762
GBP/USD 1.3030
USD/CAD 1.3133
AUD/USD 0.7182
USD/JPY 105.22
USD/CNH 6.7190
USD/ILS 3.3769
USD/MXN 21.2759
USD/CHF 0.9137
USD/INR 73.2988
USD
The dollar is lower versus all peers for the first day in three as treasury yields drop and traders interpret bank earnings. Producer prices came in higher than expected rising 0.4% in September versus an expected 0.2% month over month rise. Stimulus talks appear to have stalled as one side blames the other for the gridlock.
GBP
The pound leads G-10 gainers rising on news that PM Johnson won’t walk on Brexit negotiations after the October 15 deadline. Reports allude to the end of the EU summit on Friday as a next decision point. There has been little optimism about an agreement in the coming days.
EUR
After dropping sharply yesterday, the euro ticked up slightly on dollar weakness and as bond yields slide on optimism on further stimulus and Brexit headlines.
CAD
The Canadian dollar held strong against the weaker US dollar. No Canadian data is due out today, but Bank of Canada’s Tim Lane will speak on a panel this morning.
ASIA/PACIFIC
The yen is down slightly eyeing support ahead of a 105 psychological level. PBOC commented on the stronger yuan saying that the yuan’s appreciation reflects a strong growth environment in China.

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

Kathryn Garvey

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