The dollar continues to dominate as worries of a global recession boost haven assets. From the eurozone, a record high inflation figure adds to the common currency’s dovish sentiment. While next door in the UK, pound sterling softens on a week of disappointing press and economic data. Commodity currencies, including the New Zealand and Australian dollar, follow down markets as growth concerns materialize.
“It does not matter how slowly you go as long as you do not stop”
-
FX Rates
July 1, 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 1.0375 GBP/USD 1.198 USD/CAD 1.2965 AUD/USD 0.6773 USD/JPY 135.24 USD/CNH 6.7176 USD/ILS 3.5456 USD/MXN 20.3583 USD/CHF 0.9631 USD/INR 79.0425 USD/BRL 5.3304 USD/SGD 1.3983 USD/DKK 7.1698 USD/SEK 10.3730 USD/NOK 9.9921
-
USD
The dollar remains firm overnight as yesterday’s soft US consumer spending data couples with a record high euro-area inflation print to generate deeper risk-off sentiment and safe haven demand. Traders look to this morning’s US construction spending and ISM manufacturing figures for any clues that play into the narrative of a looming global recession.
GBPPound sterling touches its lowest level since mid-June as broad risk aversion ripples through markets. The UK released current account data Thursday suggesting continued underperformance with exacerbated foreign capital inflows.
EURThe euro slid after aggregated inflation numbers across all 19 member states hit record highs. Concerns over the ECB’s patient approach to monetary policy tightening and a major slowdown of Russian natural gas delivery add to the pending reality of euro/dollar parity.
CADThe loonie suffers its largest daily drop in a week versus the dollar but was the second-best performer among G-10 peers after the Japanese yen. Preliminary data showed GDP may have contracted by 20bps MoM in May as output was reduced in oil and gas, manufacturing, and constructions sectors.ASIA/PACIFICAustralian and New Zealand dollars slumped to their lowest levels in two years as investors turn their focus to the prospects of a global recession. However, the selloff may be overdone as central banks are expected to keep tightening with traders pricing in another 225 bps of rate hikes in Australia and 180 bps in New Zealand by year-end.
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 | |
This article is intended for U.S. audiences only. ©2023 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. |