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The US dollar gained to begin the week as investors gear up for corporate earnings which many believe will come with a reduced profit outlook. Two-year US Treasury yields remained above the 10-year (inverted yield curve) signaling possible recession in the US. The price of oil slipped and the euro heads closer to parity with the US dollar.
Economic Data this Week:
Wednesday: CPI for June
Thursday: PPI for June, Weekly Initial Jobless Claims
Friday: Retail Sales and Industrial Production for June, University of Michigan Consumer Sentiment for July
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FX Rates
July 11, 2022Rates 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 1.0083 GBP/USD 1.1884 USD/CAD 1.2991 AUD/USD 0.6742 USD/JPY 137.35 USD/CNH 6.719 USD/ILS 3.4792 USD/MXN 20.7507 USD/CHF 0.9796 USD/INR 79.4375 USD/BRL 5.3498 USD/SGD 1.404 USD/DKK 7.378 USD/SEK 10.596 USD/NOK 10.1739
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USD
The dollar continues to gain on most currencies on overall risk-off sentiment. The US Federal Reserve is expected to raise interest rates 0.75% later this month regardless of how weak economic data is between now and the FOMC meeting.
GBPThe pound is 1% weaker versus the US dollar with the rate now below 1.19. With Prime Minister Johnson having announced his resignation, many investors do not see the pound rebounding until a new PM is appointed.
EURThe euro is trading closer to parity as the US dollar enjoys safe-haven status. Fears of a recession in the eurozone are higher than that for the US due to the precarious position for European energy supplies – especially those coming from Russia.
CADThe Canadian dollar tumbles alongside its G-10 peers as risk-off trading permeated markets at the onset of today’s US trading session. Expectations of a 75bps rate hike mount at this Wednesday’s Bank of Canada meeting which many experts translate to a bullish medium-term outcome for the currency. Also, on Saturday, Canada announced further sanctions on Russia to include industrial manufacturing.
ASIA/PACIFICThe Chinese renminbi lost ground as China has reintroduced COVID restrictions amid a resurgence of cases of the more infectious Omicron variant, with 11 cities now under full or partial lockdown. Restrictions continue to weigh on the economy with consumer prices rising 2.5% in June.
The yen declined to 24-year lows against the US dollar following the election victory for Japan’s ruling bloc as investors sold JPY over the likely continuation of loose monetary policy.
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/foreign-exchange-advisory
| Source: Bloomberg | |
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