US dollar reverses gains as markets re-evaluate risks

Market sentiment moved toward less risk-off as traders assessed increased US stimulus against falling oil prices. Oil prices in London fell to 21-year low and US futures fell below $0 for the first time ever earlier this week. In Washington, Congress and the White House are working on a deal that will provide $484 billion of pandemic relief.

“Sometimes you need to scorch everything to the ground, and start over. After the burning the soil is richer, and new things can grow. People are like that, too. They start over. They find a way.”

Celeste Ng, Little Fires Everywhere

FX Rates
April 22, 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 1.0867
GBP/USD 1.2349
USD/CAD 1.4138
AUD/USD 0.6323
USD/JPY 107.8100
USD/CNH 7.0999
USD/ILS 3.5325
USD/MXN 24.3556
USD/CHF 0.9684
USD/INR 76.6687
USD
The US dollar fell against most of its peers weakening 0.1% after strengthening 0.7% over the last two days. The only currency that the USD continues to outperform is the Norwegian krone which has fallen for the third day.
GBP
Sterling experienced its biggest two-day decline in a month earlier this week and is heading towards a positive session today. This bounce is largely attributed to US dollar weakness.
EUR
EUR/USD remains largely unchanged trading around 1.0865. EU leaders are set to discuss joint debt issuance on Thursday.
CAD
USD/CAD hit a 2-week high on Tuesday of 1.4265 and has since weakened 0.4%. Despite continued downward pressure on oil, the move lower for US dollar has caused the currency pair to weaken.
ASIA/PACIFIC
USD/JPY fell as much as 0.3% trading around 107.50. AUD/USD strengthened over 1% in reaction to US dollar weakness.

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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