Equity markets remain choppy as central bankers' rate hikes disrupt markets and investors move out of risk assets. Dollar rose higher as investors seek haven assets.
"Words of Emancipation didn't arrive until the middle of June so they called it Juneteenth. So that was it, the night of Juneteenth celebration, his mind went on. The celebration of a gaudy illusion."
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FX Rates
June 17, 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 1.0482 GBP/USD 1.2236 USD/CAD 1.3043 AUD/USD 0.6953 USD/JPY 134.73 USD/CNH 6.7071 USD/ILS 3.4467 USD/MXN 20.5390 USD/CHF 0.9655 USD/INR 78.0750 USD/BRL 5.1267 USD/SGD 1.3889 USD/DKK 7.0969 USD/SEK 10.1922 USD/NOK 10.0183
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USD
Dollar holds onto weekly gain and remains strong as investors move out of risk assets in the wake of interest rate hikes. Investors bet on faster fed action is supported by the "dot plot" which shows a median projected fed funds rate of 3.4% for end of year 2022.
GBPPound slid along with gilt yields and sits slightly above a two-year low hit earlier this week. Six of nine members voted for a 25bp raise, others urged for 50bp. Investors took this as a hawkish signal and that a 50bp raise could be in view at the next meeting.
EUREuro fell, rejecting an overnight 1.06 mark largely driven by the stronger dollar and expectation of a faster pace of tightening.
CADUSD/CAD tests its 200-week moving average as the pair breaches above the 1.30 level. WTI prices slid and markets will watch for Canadian CPI, a measure of inflation next week.
ASIA/PACIFICAs expected, and diverging from other central banks, BOJ kept accommodative monetary policy in place and left rates unchanged.
Aussie succumbs to selling pressure amid dollar buying failing to capitalize on two days of gains.
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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