FX Update

USD underperforms, risk-on market sentiment

Risk-on sentiment extends into today’s trading session as risks of a no-deal Brexit ease, confidence regarding US-China trade talks resumes and Riksbank surprises markets by maintaining interest rates and less dovish stance.

"Winning is not everything, but wanting to win is."

Vince Lombardi
  • FX Rates
    September 5, 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 dollar traded weaker ahead of ADP Private Payrolls Data and remained largely unchanged after the release showed that US companies added the  most jobs in four months. US Employment data is due to release tomorrow at 8:30am EST.


    The British pound is currently trading above $1.23, strengthening almost 3% since the beginning of this week. Sterling experienced its latest boost following the UK Parliament’s vote to reject Prime Minister Boris Johnson’s call for a general election. Johnson speaks today and will try to appeal directly to voters  to win support for an election.


    The euro heads for its third day of gains against the USD trading above 1.10. Speculation that the ECB will be less dovish than initially anticipated earlier this week extends after the latest central bank decisions (RBA, BoC, Riksbank) have all been to keep interest rates on hold.


    USD/CAD hit three-week lows at 1.3192 early in the trading session. The loonie strengthened further following yesterday’s BoC meeting where the Central Bank kept its key interest rate at 1.75%. Risk-on trading and higher oil prices continue to support the Canadian dollar. The 50-day moving average of 1.3188 is the next level of support.


    The Japanese Yen continues to weaken as demand for safe-haven assets wanes.

    AUD up nearly 0.5%, as upbeat commodity markets support the currency.

    Argentine Peso

    On Sunday, Argentina announced capital controls implementing rules for exporters to repatriate foreign funds within five days of payment and that corporates must be granted permission by the central bank prior to purchasing US dollars in the FX market. Companies must also request permission to distribute dividends internationally. ARS has gained almost 9% lower since the announcement.  

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