Dollar and yen outperform peers as tensions between US and China flare

Safe-havens gained as President Trump promised a conclusive report on the origins of the coronavirus outbreak following Secretary of State Pompeo's remarks that there was significant evidence the virus originated in a Wuhan laboratory. Trump promised tariffs in retaliation and doubled down on reducing America’s supply chain dependence on China.

Monday: Markit France Manufacturing, Durable Goods Orders

Tuesday:

Wednesday: MBA Mortgage Applications, GE Factory Orders

Thursday: Bank of England Rate, US Jobless Claims

Friday: US Nonfarm Payrolls, CA Unemployment

  • FX Rates
    May 4, 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
    Dollar gained following Trump and Pompeo’s comments as investors moved positions to risk-off on the possibility of a reemergence of a trade war between the US and China. US data out today includes March factory orders and Durable Goods orders. Both are expected to show significant declines.
    GBP
     The pound is down half a percent on risk-off sentiment. The Bank of England is scheduled to meet on Thursday.
    EUR
    The euro falls for the first time in four sessions, trading just south of the $1.10 handle. Italy and Spain have begun to relax shutdown measures. The EU has estimated it will need more than one trillion euros to recharge the economy. A formal plan on this is due out on Thursday.
    CAD

    The loonie trades slightly lower, but still above 1.40 after the pair traded at weekly highs above 1.41. WTI for June delivery traded 8% lower breaking a three-day increase.

    ASIA/PACIFIC

    The yen gained on safe-haven buying, but is trading in lower volumes as Japanese markets are closed for a three-day holiday.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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