.png){kind=logo}
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, 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 1.0926 GBP/USD 1.2422 USD/CAD 1.4106 AUD/USD 0.6402 USD/JPY 106.83 USD/CNH 7.1332 USD/ILS 3.5248 USD/MXN 24.5510 USD/CHF 0.9650 USD/INR 75.7175
-
USDDollar 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.GBPThe pound is down half a percent on risk-off sentiment. The Bank of England is scheduled to meet on Thursday.EURThe 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/PACIFICThe yen gained on safe-haven buying, but is trading in lower volumes as Japanese markets are closed for a three-day holiday.
Contact Us
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
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory