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Daily
FX Update

Dollar slightly higher and risk-on sentiment returns

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Risk-on sentiment returned to markets this morning after a rocky week last week. The dollar was slightly firmer on positive US-China relations. The euro advanced at the indication of German stimulus and the sterling fell as Brexit unrest continues. Markets await news out of the Jackson Hole conference this week culminating with a speech from Fed Chairman Jerome Powell on Friday.

Monday: EU CPI
Tuesday: CA Manufacturing Sales MoM
Wednesday: CA CPI, US Mortgage Applications
Thursday: US Initial Jobless Claims, FR Markit Manufacturing, GE Markit/BME Manufacturing
Friday: US Homes Sales

  • FX Rates
    August 19, 2019

    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 dollar firmed this morning as investor sentiment was buoyed by news that Huawei has been granted a 90-day extension for business in the US. Investors are looking towards the Jackson Hole central bank conference this week during which Fed Chairman Jerome Powell is set to speak. Market strategists surmise Powell’s speech will set the expectation for a 25 basis point cut at the September meeting.
    GBP
    Sterling opened the week lower as no-deal Brexit rhetoric drove sentiment. Labor leader Corbyn called for cross-party solidarity against PM Johnson but a no-confidence vote is perceived as unlikely to gain majority. Both Johnson and Corbyn are committed to reaching an agreement with the EU. PM Johnson will meet with German Chancellor Angela Merkel and French President Emmanuel Macron this week.
    EUR

    The euro advanced this morning after sliding nearly 1% last week. The rise was predicated by risk-on appetite returning to the markets after a week of turmoil and Germany reporting that the Finance Ministry is considering easing on a budgetary surplus policy to take on new debt and support the economy amid recession fears. 

    CAD

    The loonie edged higher against most G10 peers as risk-on appetite returned to equity markets and oil prices rose. Lower CPI and softer retail sales numbers are expected this week which may provide a challenge to the Canadian dollar.

    ASIA/PACIFIC

    China’s 10-year sovereign bond yield was steady before the central bank's release of a new reference rate reform aimed to bring lower cost borrowing to the economy. The yuan, off 2.3% versus the dollar for the year, remains above 7.0 – perhaps a new threshold.

Contact Us

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/foreign-exchange

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About the Author

Kathryn Garvey is a foreign exchange Associate for Silicon Valley Bank’s global financial services group and has been with SVB since July of 2018. Prior to SVB Kathryn completed co-op internships at Innosight, Market Metrics, and The TJX Companies.

Garvey graduated from Northeastern University in 2018 with a bachelor’s degree in finance, and marketing with elective coursework in entrepreneurship and innovation from Northeastern University.

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