Second wave of virus concerns boost haven currencies

There is a jump in new virus cases in Beijing and more than 20 states in the US. After dozens of people tested positive at a wholesale market in Beijing, the city closed its largest fruit and vegetable supply center and locked down nearby housing districts. The market reacted by shifting towards risk-off trading supporting haven currencies and causing downward pressure on commodity linked currencies with Norwegian krone and Australian dollar leading losses against USD.

Economic Calendar: 

6/17 Wednesday UK CPI, Canada CPI, US Housing Starts

6/18 Thursday  Bank of England Bank Rate; US Initial Jobless Claims

  • FX Rates
    June 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 greenback rose for a third day earlier in the session strengthening as much as 0.5%. US Treasuries also rallied as investors shifted towards haven assets. The latest virus concerns signal that there may be a long road to economic recovery.
    GBP
    Sterling hit a two-week low of 1.2455 before rebounding back above 1.2500. British Prime Minister Boris Johnson will hold talks with European Union top officials in an attempt to reset negotiations that have drifted into a stalemate.
    EUR
    EUR/USD is trading around 1.1250, slightly lower than session highs of 1.1268. The next level of support is at 1.1222.
    CAD
    USD/CAD reversed a three-week losing streak after crude oil prices slumped and US dollar strengthened across the board as traders moved towards risk-off sentiment. WTI fell towards $35/bbl after sliding 8.3% last week.
    ASIA/PACIFIC
    The Japanese yen fell slightly after sliding 2% last week. Risk aversion due to concern of a second wave for the coronavirus caused NZD and AUD to weaken. The New Zealand dollar was traded at four-month highs last week on optimism that the economy is reopening. The kiwi traded to a low of 0.6381 and has since rebounded back above 0.64.
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Cate Camerota
WRITTEN BY
Cate Camerota

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