Stocks and bonds mixed, dollar up slightly, copper soars

Stocks are mixed overnight, ending the week slightly lower, but not far from last week’s all-time highs. US T-bond yields are also mixed, and lower by 10 basis points on the week. The US dollar index is slightly higher, individual currencies are mixed with Asian currencies outperforming. Copper prices, a strong indicator of global growth, soared to its highest level in over two years.

“Choose to be optimistic, it feels better.”
Dalai Lama
  • FX Rates
    November 20, 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

    Although up slightly higher overnight, the US dollar is ending the week lower across the board. US equities have underperformed compared to both European and Asian bourses. The dollar is weakest against commodity currencies – NOK, NZD, AUD, and CAD, as commodity prices are soaring.

    GBP

    The UK pound is little changed, even after EU officials warned that the UK is not moving sufficiently to surmount the remaining hurdles to a post-Brexit trade deal. It now looks likely that negotiations will move into December (the final deadline is December 31).

    EUR

    The euro is unchanged, even as the 27 EU countries approach agreement on next year’s joint spending plans for the €750 billion recovery plan. The EUR/USD remains well-entrenched in a narrow $1.16-$1.19 trading range, which has been in place since early September.

    CAD

    The Canadian dollar edged higher, as oil prices finish up nearly 5% on the week. Moody’s Investors Services kept its Aaa rating for Canada, citing the country’s economic strength and policy effectiveness, giving it a “very high degree of resilience to shocks."

    ASIA/PACIFIC

    The New Zealand and Australian dollars were the top two currency performers overnight, as “commodity currencies” as a group outperformed.

    As a region, Asian currencies outperformed. Helped by low pandemic cases, Asian economies are recovering more quickly than elsewhere.

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Scott Petruska, CFA
WRITTEN BY
Scott Petruska, CFA

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