US dollar steady amid quarter-end flows

Cate Camerota

September 29, 2020

US dollar steady amid quarter-end flows

Market risk appetite remains supported as investors continue to monitor US stimulus developments following a release from the Democrats of a scaled-back $2.2 trillion proposal. Immediate focus for FX markets is month-end portfolio rebalancing along with the first US presidential debate tonight.

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FX Rates
September 29, 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 1.1718
GBP/USD 1.2859
USD/CAD 1.3376
AUD/USD 0.7128
USD/JPY 105.5800
USD/CNH 6.8183
USD/ILS 3.4549
USD/MXN 22.2583
USD/CHF 0.9212
USD/INR 73.8550
USD
The US dollar steadies after the dollar bid across the board earlier in the session. Quarter-end flows are seen as supportive of the US currency.
GBP
Sterling continues to gain, strengthening 0.4% and hitting 1.2885. This move higher is supported by optimistic reports around Brexit and statement from the EU saying even if Boris Johnson’s government does not end plans to break international law, it will not abandon talks with the UK.
EUR
EUR/USD rose as much as 0.2% heading for the currency pair’s second day of gains. The common currency briefly broke above the 1.17 level following CPI data out of Germany which showed consumer prices contracting 0.2% vs. the expectation of 0.1%.
CAD
USD/CAD remains largely unchanged, continuing to hover around the 1.3380 level. The loonie pared earlier gains in reaction to lower oil prices and risk-off trading ahead of the US presidential debate later today.
ASIA/PACIFIC
The Australian dollar lead gains for G-10 currencies as demand increased from exporters and offshore funds. The currency pair is 0.4% higher trading around 0.7101.

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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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WRITTEN BY

Cate Camerota

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