The FX Update is moving to a weekly format beginning July 18. Look for the FX Update every Monday.
Yesterday’s CPI data out of the US continues to support the greenback as the currency strengthened against all but one of its G10 peers. Traders are now expecting that the US central bank will hike rates more quickly than previously anticipated.
Don’t limit yourself. Many people limit themselves to what they think they can do. You can go as far as your mind lets you. What you believe, remember, you can achieve.”
July 14, 2022
EUR/USD 1.0002 GBP/USD 1.1801 USD/CAD 1.3183 AUD/USD 0.6701 USD/JPY 139.03 USD/CNH 6.7627 USD/ILS 3.4922 USD/MXN 20.9398 USD/CHF 0.9851 USD/INR 79.8788 USD/BRL 5.4634 USD/SGD 1.4067 USD/DKK 7.4386 USD/SEK 10.6014 USD/NOK 10.2557
The greenback strengthens versus all of its G10 peers except for one following a data release that showed inflation increased more than expected. Investors are expecting the Federal Reserve to hike rates at a faster pace given this data release.GBP
Sterling weakens on broad US dollar strength. Another driver for the currency is the ongoing Conservative Party leadership contest. GBPUSD is down 0.4% trading around 1.1830.EUR
EURUSD fell 0.5% as Italian bonds decline. Next level of support for the currency pair is at YTD low of 0.9998.CADUSDCAD is trading 1.3% higher as WTI falls 2.2%. The Canadian dollar weakened amidst broad USD strength following inflation data out of the US.ASIA/PACIFIC
The Japanese yen slipped to a fresh 24-year low amidst broad USD strength. The Jobless rate out of Australia dropped and pushed the currency higher.
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.