Markets show a rosier outlook for risk assets today despite Russia technically defaulting on their foreign currency debt. It should be noted, however, Russia has funds but are unable to make payments due to sanctions. An ECB forum unfolds this week with a star-studded panel following the G-7 summit in Bavaria. APAC equities moved higher regardless of geopolitical risks continuing to surface globally.
Economic Data this Week:
Tuesday: US (CB) Consumer Confidence
Wednesday: China Manufacturing PMI
Thursday: US PCE Price Index
Friday: US ISM Manufacturing PMI
June 27, 2022
EUR/USD 1.0593 GBP/USD 1.2303 USD/CAD 1.2882 AUD/USD 0.6944 USD/JPY 135.1 USD/CNH 6.6862 USD/ILS 3.4257 USD/MXN 19.8967 USD/CHF 0.9561 USD/INR 78.3463 USD/BRL 5.2181 USD/SGD 1.3839 USD/DKK 7.0235 USD/SEK 10.0691 USD/NOK 9.7961
The dollar trades mixed with end-of-month rebalancing flows seen supporting the greenback. US Durable Goods orders rose more than expected in May despite more recent manufacturing data suggesting signs of softening. A slew of economic data due this week will be closely monitored for economic deterioration as risks of an over-tightening of monetary policy mount.GBP
Pound sterling advances slightly after a three-week decline was halted last Friday. A plunge in consumer confidence stemmed by record price increases and weak productivity growth show deeper structural issues that suggest the UK is already in a recession.EUR
The common currency continues to hold ground with risk appetite intact rolling into a new week. Markets will watch for any developments stemming from an ECB forum Tuesday in Portugal where Fed Chair Powell, ECB President Lagarde, and BOE Governor Bailey will appear on stage together.CAD
The loonie is unchanged in morning trading after posting its best performance since March last week. Crude futures edge higher as the G-7 meeting in Bavaria continues and leaders, including PM Trudeau, weigh the possibility of a price cap on Russian oil.ASIA/PACIFIC
Bank of Japan minutes were released and signaled zero apprehension of market pressure to change strategy on their monetary policy path.
PBOC Governor, Yi Gang, pledged to maintain a supportive monetary policy to support the economy’s recovery from COVID outbreaks and lockdowns.
Yen and renminbi slightly gain and retreat respectively against the dollar.
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
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