China closes US consulate in Chengdu and investors question the pace to pre-covid economic levels

China’s renminbi weakened slightly after authorities told the US to close one of its less important consulates. The US dollar had a late day rally yesterday afternoon as equity markets began a sell-off. This morning the dollar is weak in volatile trading as markets wait to see if the US/China flare-up will subside or escalate. The euro continues to gain on the dollar and the British pound holds recent gains.

"If you want to achieve greatness stop asking for permission." 

  • FX Rates
    July 24, 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

    Bearish sentiment around the US dollar seems to be prevailing again in morning trading. However, the dollar's safe-haven status was on full display yesterday when it temporarily surged as equity markets tanked. The dollar is at a pivotal point as Covid concerns hamper the return to a full economy and US/China relations worsen.

    July PMI data and June New Home Sales data due later this morning.




    The British pound held onto gains despite stalled trade talks with the European Union. Retail sales for June surprised on the upside as did July PMI data.



    The euro gained again this morning despite mixed PMI data. Germany was stronger than expected but French PMI for July missed estimates. FX traders seem to favor euro over the US dollar despite the dollar's traditional safe-haven status.


    The Canadian dollar lost ground in morning trading after gaining almost 2% this week vs. the US dollar. Gold continued its march higher helping the loonie as did a stable oil price.



    The Chinese renminbi weakened again after news of authorities closing a US consulate. China appears to be doing a better job of containing Covid relative to the US. With President Trump facing reelection in November investors are concerned he will continue to punish China as it remains a popular, bipartisan stance.

    The Japanese yen strengthened as it's poised to break through the 106 level set in April.

Contact Us

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
See all of SVB's latest FX information and commentary at

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at You can withdraw your consent at any time.

Peter Compton
Peter Compton

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Daily FX Update: US dollar continues seven-day losing streak


Daily FX Update: The US dollar hits 7-week lows as EUR advances on vaccine news


Global stocks reach all-time highs on strong China GDP, soft US bond yields


Daily FX Update: Lower dollar, higher stocks amid upbeat US earnings & economic data


Daily FX Update: Stocks firm, dollar lower ahead of bank earnings reports


Daily FX Update: CPI exceeds expectations, stocks and dollar mixed