FX Update

US dollar rallies along other haven currencies

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US dollar rallies along with other safe haven currencies as optimism for US-China trade talks diminishes. UK PM Boris Johnson makes another attempt at a Brexit deal and states that the UK will leave the EU on Oct 31 with or without an agreement. EUR/USD remains steady despite disappointing data releases.

Tuesday: Fed Chairman Powell speaks in Denver; Canada Housing Starts; US PPI
Wednesday: Fed Reserve Meeting Minutes Release
Thursday: US CPI
Friday: Canada Jobs Data

  • FX Rates
    October 7, 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

    US-China trade talks start up again this week. US President Donald Trump has proposed a broad trade deal which is expected to be opposed by senior officials in China. The greenback is stronger this morning due to a risk-off market sentiment. On Tuesday, Fed Chairman Jerome Powell is scheduled to speak in Denver. Expectation is for Powell to reiterate that the economy faces risks but is in overall good shape. The FOMC September meeting minutes are due to be released on Wednesday.


    Sterling slightly weaker this morning after comments from Prime Minister Boris Johnson that Brexit will happen on Oct 31 whether or not the EU accepts the latest exit deal. GBP/USD continues to trade below the 1.23 handle.


    Data out of eurozone showed that investor sentiment hit its lowest level in more than six years. Germany also released factory orders which declined in August. EUR/USD remained largely unchanged, trading 0.1% lower.


    USD/CAD rose 0.5% last week and remains range-bound ahead of US-China trade talks. Key employment data out of Canada is set to be released on Friday. WTI is trading 1.1% higher this morning after declining 5.5% last week.


    JPY is stronger on demand for haven assets as the market awaits US-China trade talks. Trading may be muted given that Hong Kong and Chinese markets are closed and Sydney is on holiday.
    AUD is down slightly this morning falling as much as 0.3% against the USD. This move is attributable to the markets anticipation of the trade talks between the US and China.

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Cate Camerota
Cate Camerota

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