US dollar on track for second week of gains

Cate Camerota

April 24, 2020

US dollar on track for second week of gains

European leaders failed to agree on a plan to protect the region’s economy from the impact of the coronavirus. In reaction to this, markets shifted to risk-off supporting the US dollar. EUR/USD fell to one-month lows with US equities trading mixed and US treasuries stabilized. The US bill for a $484 billion package was passed by the House of Representatives reloading funding for small businesses and providing support for hospitals.

“No need to hurry. No need to sparkle. No need to be anybody but oneself."

Virginia Woolf

FX Rates
April 24, 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 1.0792
GBP/USD 1.2346
USD/CAD 1.4070
AUD/USD 0.6369
USD/JPY 107.5300
USD/CNH 7.0910
USD/ILS 3.5174
USD/MXN 24.8437
USD/CHF 0.9750
USD/INR 76.4563
USD
US dollar continues to hold higher, strengthening for a fifth day against its peers. News from pharma company Gilead suggested that the drug developed to cure coronavirus was a failure spurring demand for the US dollar and other safe haven assets.
GBP
Fears of an extended virus lockdown and poor retail sales pushed sterling lower, on-pace for its first weekly drop since earlier this month. UK retail sales fell the most for the month of March since records began.
EUR
EUR/USD fell below the 1.08 handle hitting a one-month low of 1.0727. Christine Lagarde, President of the European Central Bank, said to euro-area governments that the region’s economy could shrink by as much as 15% as a result of the pandemic.
CAD
USD/CAD fell 0.2% as oil prices rebound. WTI June future contracts strengthened $0.43 to $16.93.
ASIA/PACIFIC
The Japanese yen remains firmly in the 107-108 trading range. The currency pair has risen slightly this week (0.1%). AUD and NZD dropped on news doubting that the drug developed to cure coronavirus would work.

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

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.

Source: Bloomberg

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

©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.

The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.

Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.

WRITTEN BY

Cate Camerota

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Global stocks reach all-time highs on strong China GDP, soft US bond yields

Scott Petruska, CFA

Daily FX Update: Lower dollar, higher stocks amid upbeat US earnings & economic data

Scott Petruska, CFA

Daily FX Update: Stocks firm, dollar lower ahead of bank earnings reports

Scott Petruska, CFA

Daily FX Update: CPI exceeds expectations, stocks and dollar mixed

Scott Petruska, CFA

Daily FX Update: Stocks & dollar lower ahead of inflation and retail sales data

Scott Petruska, CFA

Daily FX Update: Treasuries, Dollar tick higher to end week

Kathryn Garvey