Daily FX Update: Sterling fell after BoE announcement to increase asset purchasing program

Cate Camerota

June 18, 2020

Sterling fell after BoE announcement to increase asset purchasing program

The US dollar was mixed this morning trading higher in anticipation of jobless claim data and as investors evaluated virus news and central bank announcements. The Bank of England announced that the central bank would increase its asset buying program by 100 million pounds causing the British pound to trade lower.

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FX Rates
June 18, 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.

EUR/USD 1.1220
GBP/USD 1.2429
USD/CAD 1.3583
AUD/USD 0.6854
USD/JPY 106.7800
USD/CNH 7.0823
USD/ILS 3.4563
USD/MXN 22.5002
USD/CHF 0.9513
USD/INR 76.1462
USD
US dollar gained ahead of jobless claims, moving slightly lower after the data was released. The data showed that jobless claim numbers are at 1508k vs. the expectation of 1290k.
GBP
The Bank of England announced that it would boost its asset purchasing program by 100 billion pounds causing sterling to weaken. GBPUSD fell almost 1% and is trading around 1.2460.
EUR
EURUSD is trading slightly lower hovering around the 1.1240 level. The next level of support is within the 1.1210-1.1200 range, levels of resistance are at the sessions high of 1.1261 and 1.1300.
CAD
Loonie held firm ahead of US jobless claim release as oil prices remained firm and amidst signs of stronger demand despite news of virus outbreaks. USDCAD has since moved higher trading up toward 1.3580.
ASIA/PACIFIC
USDJPY is trading below the 107 handle, hitting a low of 106.70. Data out of New Zealand showed that GDP fell 1.6% in Q1; NZDUSD is down slightly around 0.6451. Australian jobless rate increased to 7.1% vs. expectation of 6.9%; AUDUSD fell as much as 0.7% before reversing losses and trading 0.1% lower.

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

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Cate Camerota

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