Yesterday's sell-off bleeds into today as the world's worries about an impending recession intensify. Despite a slight bounce in equities overnight, expectations of a larger Fed hike keep markets on the back foot. FOMC meeting begins today and markets are bracing for a large rate hike in reaction to Wall Street dipping into a bear market yesterday.
June 14, 2022
EUR/USD 1.0419 GBP/USD 1.2012 USD/CAD 1.2924 AUD/USD 0.6889 USD/JPY 134.84 USD/CNH 6.7410 USD/ILS 3.4677 USD/MXN 20.6672 USD/CHF 1.0000 USD/INR 77.9987 USD/BRL 5.1210 USD/SGD 1.3923 USD/DKK 7.1407 USD/SEK 10.2037 USD/NOK 9.9943
Dollar firm near two-year highs and mixed versus G-10s; rising versus the Australian dollar and pound, and falling against the euro. The FOMC two-day meeting begins today and traders have priced in a 99% chance of a 75bps hike to be announced tomorrow.GBPPound slides 50bps to sit just below 1.21 as traders position ahead of the Bank of England meeting this week. The pair printed a two-year low and is in view of the 1.20 level.EURThe euro picked up some ground after falling below 1.04 yesterday. Hawkish ECB speak helps the common currency but for the most part traders are refraining from any big bets until tomorrow's FOMC announcement.CAD
Canadian dollar slid for a fifth day versus the dollar despite advancing WTI prices. Risk off environment keeps USD strong.ASIA/PACIFIC
USD/JPY is largely unchanged following BoJ’s record purchase of bonds to manage the yield curve.
Aussie dollar slumped to one-month lows and sits below 0.70 as investors flee to quality affecting risk-sensitive currencies.
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.