Risk-off sentiment drives dollar higher, equities lower

A more cautious approach to markets is driving the US dollar higher, equity markets and bond yields lower. Oil prices dropped below $20 a barrel. President Trump is penalizing the World Health Organization (WHO) by withholding funding. Just released US March Retail Sales fell by a record 8.7% MoM.

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  • FX Rates
    April 15, 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

    The dollar is up across the board, reversing a week-long sell-off. A risk-off mood in financial markets has fueled demand for the dollar, its biggest losers were the Australian and New Zealand dollars, down 1.9% and 1.7% respectively. US equities are poised to open down over 2%. US Treasury 10-Year yields are lower by 10 basis points to 0.66% following dismal US Retail Sales and US Empire Manufacturing data released at 8:30am this morning.

    GBP

    In relatively quiet trading and against a broadly stronger US dollar, the UK pound dropped over 1%, and now trades back below $1.25.

    EUR
    Germany plans to extend its lockdown despite new COVID-19 cases dropping for the sixth straight day. Italy reported the fewest new cases in a month. The euro fell about 0.65% and to the lower end of its recent $1.09-$1.10 range.
    CAD

    Oil prices fell to 18-year lows after dismal forecasts for global oil demand by the International Energy Agency. The Canadian dollar weakened overnight by 1.25% with the USD/CAD now trading over C$1.40 again. Traders await the Bank of Canada decision at 10am, no rate change is expected.

    ASIA/PACIFIC

    The Chinese yuan moved little overnight. A screenshot of China’s sovereign digital currency appeared online, providing a rare peak into the advance of Beijing’s digital yuan. There is no official schedule for its launch.

    Even the Japanese yen couldn’t overcome the broadly stronger dollar. The USD/JPY moved slightly higher, but remains well within its week-long downtrend.

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