Safe haven assets remain attractive as markets trade risk-off

Renewed tensions between the US and China along with remaining concerns over the coronavirus caused risk sentiment to take a hit. News that Trump’s administration rejected China’s expansive maritime claims in the South China Sea escalated tensions with Beijing. This decision reversed previous policy where the US would not take sides.

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  • FX Rates
    July 14, 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
    Risk-off sentiment has supported the USD against its peers. The US release of consumer price data showed a jump of 0.6% from the prior month, the first increase since February.
    The British pound dropped below 1.26 after data from the UK showed that the economy expanded much slower than expected during the month of May. Sterling hit a low of 1.2507.
    EUR/USD extends its winning streak as the currency pair trades above 1.1350 hitting a high of 1.1381. Ahead of the EU summit, German Chancellor Angela Merkel and Italy’s Giuseppe Conte stated that EU leaders must deliver a “massive” response to the economic fallout of the pandemic.

    The Canadian dollar fell lower along with weaker oil prices. The commodity’s price traded lower as investors anticipate the continued threat of the virus will limit demand in some economies. USD/CAD is currently trading above the 1.36 handle.

    Markets continue to trade with risk-off sentiment following news from the World Health Organization which warned that Covid-19 probably will not disappear for the foreseeable future. USD/JPY remains largely unchanged trading around 107.35.
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Cate Camerota
Cate Camerota

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