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.

  • 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.

    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.

    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.
    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.

    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.

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Cate Camerota
Cate Camerota

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