FX Update

US dollar stronger against peers; Sterling falls below 1.32 after statement from Boris Johnston

The US dollar rose against its peers for the first time in three days while the British pound fell after Prime Minster Boris Johnston said that he would impose a hard deadline for Brexit of December 2020 and that the UK would exit the EU with or without a deal. The Reserve Bank of Australia released minutes which caused AUD/USD to weaken.

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  • FX Rates
    December 17, 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
    The US dollar rose against its peers after declining for the last three days. The greenback strengthened following momentum out of the Asia trading session and as news from the UK suggested that Prime Minister Boris Johnston could push for a Brexit with or without a deal by December 2020.
    Sterling has erased gains from the election after the Conservative party won the election by a landslide. GBP/USD initially traded up towards 1.35, but is currently trading below 1.32. The currency weakened after a statement from Prime Minster Boris Johnson stated that he would fix a hard deadline for Brexit of December 2020.

    EUR/USD has held higher but remains below its four-month high of 1.1199 which the currency pair hit last week. Statement from European Central Bank Council member Olli Rehn said that the ECB’s outlook for inflation is subdued and the ECB will continue to monitor all side effects of negative rates.

    USD/CAD hit lows not seen in almost 6 weeks yesterday following positive news for the trade deal between US and China causing higher appetite for riskier assets. The currency pair has since rebounded, trading above 1.3150.

    The Reserve Bank of Australia released its minutes showing that the central bank is prepared to further ease monetary policy to boost hiring and investment. AUD/USD fell 0.5% on this news.
    USD/JPY remains largely unchanged as traders anticipate the Bank of Japan’s last meeting of the year which will be held on Thursday.

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