Quarter-end flows support the greenback
The greenback is modestly higher than its G-10 peers as month-end flows support the currency. Last night’s US Presidential debate resulted in risk appetite retreating as the conversation highlighted a contested election in November. Betting odds are signaling a higher probability of a Joe Biden win. Data later this week will be a focus for the markets including ADP employment, US employment reports and GDP.
September 30, 2020
EUR/USD 1.1707 GBP/USD 1.2864 USD/CAD 1.3378 AUD/USD 0.7138 USD/JPY 105.6500 USD/CNH 6.8030 USD/ILS 3.4355 USD/MXN 22.2898 USD/CHF 0.9223 USD/INR 73.7725
USDThe US dollar strengthened during Asia hours as equities traded lower and Treasuries rose following betting odds signaling that Joe Biden will win the US election after the US Presidential debate. The Bloomberg dollar index is trending towards its worst quarter in three years but its best month since March.GBPSterling snapped its two-day winning streak as Brexit negotiations show signs of reversing positive momentum. GBP/USD is on track to gain 3.4% this quarter.EUREUR/USD fell 0.4% holding above the 1.17 level. The common currency has strengthened 4.4% over t he last quarter but is on track to loss almost 2% this month.CAD
The loonie remains largely unchanged and the pair is on track to close the month up 2.6%. Crude oil weakened 0.6% this morning.ASIA/PACIFIC
Better than expected manufacturing data out of China supported the Australian dollar with AUD/USD up 0.3% earlier in the session. USD/JPY remains largely unchanged maintaining a range of 105.44-105.80.
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
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 PrivacyOffice@svb.com. You can withdraw your consent at any time.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
This article is intended for U.S. audiences only.
©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.
The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.