Safe-haven yen and Swiss franc strengthen as equities weaken in front of tomorrow's Fed announcement

The dollar is stronger in morning trading along with other safe-haven currencies as FX markets await results of tomorrow’s regularly scheduled Fed meeting and press conference. The euro paused around 1.1730 after raising 4% this month and the British pound is trading near 4-month highs vs. the greenback.

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  • FX Rates
    July 28, 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 stronger this morning as safe-haven currencies are all up mostly on profit taking. The Federal Reserve meets today and tomorrow with the announcement/press conference starting at 2:00pm Eastern. Goldman Sachs published a note highlighting the possibility of the US dollar losing some status as the world's reserve currency and sees gold increasing in value.

    GBP

    The British pound pulled back from a 4-month high after gaining for 7 trading sessions in a row. FX traders took profits and may await tomorrow’s Federal Reserve meeting in the US before resuming dollar-selling.

    EUR

    The euro is trading at the highest levels since September 2018 and has risen 4% vs. the US dollar this month. Momentum from the EUR750B stimulus package caused many FX traders to become longer-term bulls on the common currency.

    CAD

    The Canadian dollar weakened due to overall risk-off sentiment. The price of oil is flat this morning. 

    ASIA/PACIFIC

    Concerns of geopolitical risk kept the Chinese renminbi at 7.00 as FX traders see better opportunity in safe-have currencies.

    The Australian dollar swung to a loss after the price of gold hit $2,000/oz and then quickly lost $50/oz.  However, the A-dollar is trading close to the highs of mid-2019.

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Peter Compton
WRITTEN BY
Peter Compton

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