A heavy week of economic data in the US kicks off with positive risk sentiment
Tuesday: Markit PMI for June, New Home Sales for May
Wednesday: Mortgage Applications and House Price Index
Thursday: Durable Goods Orders for May, Weekly Initial Jobless Claims
Friday: Personal Income and PCE Deflator for May, University of Mich. Sentiment Index for June
June 22, 2020
EUR/USD 1.1223 GBP/USD 1.2408 USD/CAD 1.3569 AUD/USD 0.6885 USD/JPY 106.8600 USD/CNH 7.0746 USD/ILS 3.4438 USD/MXN 22.4061 USD/CHF 0.9503 USD/INR 76.0250
Financial markets defaulted to economic optimism this morning with the US dollar weakening due to risk-on trading. A heavy week of economic data will test the bulls as more job loss figures and other data will show a weak US economy.GBP
The pound is stronger this morning after Bank of England governor Andrew Bailey said the balance sheet must be shrunk before interest rates are increased. The announcement signals a change in policy to sell bonds (or let them mature) accumulated during quantitative easing.EUR
The euro strengthened on overall US dollar weakness. Optimism surrounding a resolution to the German court findings on the ECB bond buying program also helped push the euro higher.CAD
The Canadian dollar was flat versus the US dollar as the price of oil held steady.ASIA/PACIFIC
The Japanese yen weakened slightly as markets opened Monday with a “risk-on” tilt.
The Chinese renminbi strengthened slightly versus the dollar as the most recent outbreak of coronavirus appeared to be contained.
The Australian dollar gained after RBA Governor Lowe commented that recent gains in the A-dollar are not a problem and he does not see the currency as overvalued.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory