USD weakness returns, closing Q3 with 3.5% drop

USD weakness returns, closing Q3 with 3.5% drop

The US dollar experienced its weakest quarter since the beginning of 2017 dropping 3.5%. Two large factors that contributed to the lower US dollar include the rally for US equities and the speculation that additional fiscal stimulus is imminent. News out of the UK signaled that Brexit negotiations are not moving in the right direction causing Sterling to weaken.

“Life has got all those twists and turns. You’ve got to hold on tight and off you go.”
Nicole Kidman
  • FX Rates
    October 1, 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.

  • USD
    The dollar ended September with a monthly gain but not large enough to erase the quarterly loss of 3.5%. The US dollar’s appeal has diminished as US equities trade higher and as investors expect additional fiscal stimulus.
    Sterling led losses for G-10 currencies earlier in the trading session following a report that the UK and European Union are far from agreement in Brexit negotiations. GBP/USD weakened 0.8% hitting a low of 1.2820 before reversing losses.
    The EUR slipped against the greenback earlier in the trading session but has since reversed losses. EUR/USD advanced 0.3% hitting a high of 1.1770 as demand for topside exposure via options picked up momentum.
    USD/CAD fell to lowest level since September 21 hitting 1.3284. The loonie extended its rally from Wednesday as investors shifted towards riskier assets. The pair strengthened over 2% for the month of September.

    The Australian dollar and New Zealand dollar climbed alongside US stock futures with both currencies hitting one-week highs. USD/JPY remains largely unchanged trading within a range of 105.41-105.68.

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Cate Camerota
Cate Camerota

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