Yen advances on news that US President Trump tests positive for Covid-19

Cate Camerota

October 2, 2020

Yen advances on news that US President Trump tests positive for covid-19

Markets moved towards risk-off trading with equity futures down across the board and the US dollar advancing versus most G10 peers. The USD held gains following employment data which showed the unemployment rate falling to 7.9% vs. expectation of 8.2% the numbers were slightly skewed due to a lower participation rate. The Japanese yen strengthened against the US dollar as much as 0.7% as investors moved towards safe haven assets. Sterling also moved higher on news that Boris Johnson is due to meet with European Commission President Ursula von der Leyen this Sunday.

Check out SVB’s new Risk Advisory content that outlines the importance of paying attention to fluctuating currencies during the budget planning process:

Use FX budget rates to improve global FP&A

Lease reporting rules force private companies to adapt

FX Rates
October 2, 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 1.1706
GBP/USD 1.2908
USD/CAD 1.3330
AUD/USD 0.7144
USD/JPY 105.2800
USD/CNH 6.7575
USD/ILS 3.4357
USD/MXN 21.9124
USD/CHF 0.9211
USD/INR 73.1425
USD
The dollar rose against all G10 currencies except for yen, pound and Swedish krona. The greenback strengthened on broad risk-off trading following news of the US President’s positive coronavirus test.
GBP
The British pound reversed losses strengthening 0.5% and hitting a high of 1.2954. On Sunday, Boris Johnson will hold talks with the European Commission President Ursula von der Leyen to an attempt to get closer to a deal.
EUR
EUR weakened against the greenback as markets move towards risk-off trading and following employment data out of the US. The common currency hit a low of 1.1696 but is currently trading above the 1.17 handle.
CAD
The Canadian dollar weakened alongside with risk appetite following news that Trump and the first lady tested positive for Covid-19. Crude oil fell 3.4% after dropping as much as 5%, the commodity is trading at lowest levels in more than 3 weeks.
ASIA/PACIFIC
USD/JPY fell almost 1% as markets shifted to risk-off following news that US President Trump tested positive for coronavirus. One week volatility for the currency pair jumped 175 bps rising to 6.71%. The Australian dollar lead losses for G10 currencies falling as much at 0.8% .

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 fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory

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 PrivacyOffice@svb.com. You can withdraw your consent at any time.

Source: Bloomberg

This article is intended for U.S. audiences only.

©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.

The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.

Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.

WRITTEN BY

Cate Camerota

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.

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

Scott Petruska, CFA

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

Scott Petruska, CFA

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

Scott Petruska, CFA

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

Scott Petruska, CFA

Daily FX Update: Stocks & dollar lower ahead of inflation and retail sales data

Scott Petruska, CFA

Daily FX Update: Treasuries, Dollar tick higher to end week

Kathryn Garvey