US dollar on track for largest 2-day gain in 7 weeks

Silicon Valley Bank

August 3, 2020

US dollar on track for largest 2-day gain in 7 weeks

The US dollar reversed its losing streak and extends its rebound for a second day against peers. Renewed concern from investors for a second wave of coronavirus shifts market sentiment to risk-off with WTI falling below $40/bbl. Oil prices continue to slide as OPEC and its allies announce a plan to increase crude output.

8/3 Monday: US ISM Manufacturing

8/5 Wednesday: US ADP Employment Change

8/6 Thursday: BOE Bank Rate Decision; US Initial Jobless Claims

8/7 Friday: US Change in Nonfarm Payrolls

FX Rates
August 3, 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.

EUR/USD 1.1705
GBP/USD 1.3014
USD/CAD 1.3432
AUD/USD 0.7083
USD/JPY 106.37
USD/CNH 6.9841
USD/ILS 3.4162
USD/MXN 22.5731
USD/CHF 0.9226
USD/INR 75.0100
USD
The Bloomberg Dollar index strengthened as much as 0.4% following the 3.3% loss last month - July was the US dollar’s worse month since January 2018. Markets will shift focus to upcoming speeches from Federal Reserve officials.
GBP
Sterling has traded within a large range today as investors evaluate concerns that the UK could reintroduce virus lockdown measures and as the US dollar strengthens across the board. Markets are also focused on commentary and decision from the BOE later this week.
EUR
EUR/USD fell as much as 0.5% following data showing job cuts which contradicted an earlier report that signaled a stronger return for the economy. The currency pair hit a daily low of 1.1696.
CAD
In response to weaker oil, USD/CAD hit fresh daily highs trading above 1.3440. WTI prices fell below $40 as concerns for a second wave of a coronavirus resurface.
ASIA/PACIFIC
USD/JPY followed broad dollar trend trading higher hitting a level of 106.43 earlier in the session. New Zealand’s Prime Minister Jacinda Ardern announced that the government will continue to provide support to help the economy endure the pandemic fallout.

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/trends-insights/foreign-exchange-advisory

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Source: Bloomberg

This article is intended for U.S. audiences only.

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