The FX Update is moving to a weekly format beginning July 18. Look for the FX Update every Monday.
The Bloomberg Dollar Spot Index pulls back from its highest level since inception (2013) as upbeat US data boosts risk assets. Investors provide some reprieve to the euro ahead of next week’s ECB meeting with expectations of its first rate hike in over 10 years. A weak GDP print in China spurs safe haven buying of the yen.
July 15, 2022
EUR/USD 1.0090 GBP/USD 1.1863 USD/CAD 1.3020 AUD/USD 0.6801 USD/JPY 138.57 USD/CNH 6.7572 USD/ILS 3.4663 USD/MXN 20.5920 USD/CHF 0.9783 USD/INR 79.8775 USD/BRL 5.3820 USD/SGD 1.3994 USD/DKK 7.3817 USD/SEK 10.4898 USD/NOK 10.1569
The dollar trades lower amongst most of its G-10 peers as risk appetite returns to equity markets following better than expected US retail sales and consumer sentiment data. Despite US manufacturing output declining in June for a second month, Fed officials are openly calling for larger rate hikes after a four-decade high inflation print earlier this week.GBP
Pound sterling climbs with focus on today’s first TV debates in the race to succeed Boris Johnson as Conservative leader and UK prime minister. The UK calendar for next week includes important inflation and retail sales data which will heavily influence the BOE’s policy guidance at their next meeting on August 4.EUR
The euro rallies slightly from dollar parity amid short covering ahead of this weekend’s meeting of G-20 finance ministers. Investors will intensely monitor the outcome of next Thursday’s ECB meeting after President Lagarde promised a 25-basis point rate increase at last month’s meeting.CAD
USD/CAD catches a bid as the US dollar weakens following comments from the Fed that point to the next rate hike being close to 75bps versus previously expected 100bps. WTI crude oil traded 2% higher also supporting the loonie.ASIA/PACIFIC
The Japanese yen reversed losses after trading at a 24-year low. JPY strengthens versus USD on weak economic data out of China and concerns around aggressive policy tightening in the US.
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.