Tuesday: ZEW Survey Expectations
Wednesday: US CPI MoM
Thursday: US Initial Jobless Claim, UK GBP QoQ
Friday: University of Michigan Sentiment, EU CPI YoY
May 9, 2022
EUR/USD 1.0546 GBP/USD 1.2344 USD/CAD 1.2919 AUD/USD 0.7019 USD/JPY 130.77 USD/CNH 6.7643 USD/ILS 3.4399 USD/MXN 20.2760 USD/CHF 0.9925 USD/INR 77.4637 USD/BRL 5.1335 USD/SGD 1.3909 USD/DKK 7.0565 USD/SEK 10.0234 USD/NOK 9.5580
The dollar continues to strengthen and it briefly rose to its strongest levels in two years. The ongoing Russian Ukrainian War and lockdowns in China are a concern for global growth, leading to dollar strength. The Fed announced that they plan to continue with rate increases in 50bps increments, and they will not look to make larger hikes in a single meeting.GBPSterling continues to weaken against the dollar after falling more than 200 pips last week. Last week the BOE raised interest rates 50 basis points. The BOE’s signaled concern of a UK recession as soon as Q4 2022, which caused sterling to fall against its peers.EUR
EURUSD rates remain mostly unchanged from last Friday. The EUR continues to trade near $1.05.CAD
The loonie fell against the dollar as oil prices slide. USDCAD rates reached lows that were last seen in December 2021. WTI Oil and Brent Crude are down 2.35% and 2.23% respectively on the day.ASIA/PACIFICAUDUSD rates are holding slightly above 0.7000. Sliding oil prices and pressure on other commodities are weighting on the currency to start the trading day.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory
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.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
This article is intended for U.S. audiences only.
©2022 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, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.