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US dollar holds at two-year lows
Investors remain focused on the US virus aid package negotiations and upcoming jobs data due to be released on Friday. Recent commentary from Cleveland Federal Reserve President Loretta Mester stated that more fiscal support is needed. Sterling advanced the most vs. USD following the Bank of England meeting where the central bank kept its monetary policy unchanged.
“Life for me these days is a lot about letting the unknown be wonderful.”
Anne Hathaway
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FX Rates
August 6, 2020Rates 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 1.1856 GBP/USD 1.3170 USD/CAD 1.3277 AUD/USD 0.7209 USD/JPY 105.38 USD/CNH 6.9485 USD/ILS 3.4012 USD/MXN 22.3964 USD/CHF 0.9095 USD/INR 74.9312
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USD
The US dollar continues to trade around its two-year low as investors focus on negotiations of the next virus aid package. Data showed a sharp drop in US employment gains for July adding to US dollar weakness, the market will focus on employment data due to be released Friday.
GBPSterling gained as much as 0.6% following commentary from the Bank of England sighting the pitfalls of negative rates and maintaining its monetary policy. The British pound gained the most among G10 currencies against the US dollar.
EUREUR/USD continues to trade above the 1.18 level following data out of Germany that showed factory orders advanced more than expected despite a spike of Covid-19 cases which was the highest number in more than three months.CADThe Canadian dollar weakened in response to lower oil prices. WTI fell 0.6% trading below $42/bbl. Canadian jobs data will be released on Friday and the expectation is that it will show slower growth for the month of July.ASIA/PACIFICUSD/JPY hovers around 105.50 after trading marginally lower earlier in the session. Obon holiday period starts next week in Japan which is one of the busiest travel seasons in the country. Economy Minister and leader of the government’s virus-management policies, Yasutoshi Nishimura is warning the country to be exercise caution to avoid a virus wave.
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See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory