The dollar sell-off began overnight and picked up speed despite the stronger than expected ADP jobs data. Dollar weakness is broad-based as investors may see risk-on sentiment outweighing higher Treasury rates. The yen rebounded from yesterday's weakest level in five years while China guided companies to expect a depreciating renminbi. Markets await this afternoon's FOMC minutes and Friday’s Non-Farm Payroll numbers.
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FX Rates
January 5, 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 1.1333 GBP/USD 1.3551 USD/CAD 1.2706 AUD/USD 0.7262 USD/JPY 115.75 USD/CNH 6.3685 USD/ILS 3.0932 USD/MXN 20.3766 USD/CHF 0.9156 USD/INR 74.3613 USD/BRL 5.6440 USD/SGD 1.3541 USD/DKK 6.5609 USD/SEK 9.0522 USD/NOK 8.7954
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USD
The dollar continued its overnight slide despite the private payroll company ADP reporting US companies added over 800K jobs in November which was the highest in 7 months. The forecast was for a gain of 410K, and the prior month was downwardly revised to +505K.
US PMI for December data is due later this morning and FOMC minutes from December meeting are released this afternoon.
GBPThe British pound continued to add to its strengthening trend which began in mid-December. The Bank of England surprised markets at that time with a rate increase and some FX speculators see the UK leading the US in rate increases in 2022.
EURThe euro is stronger on overall US dollar weakness but remains in the 1.12-1.14 trading range. With the European Central Bank clearly guiding the markets toward very low interest rates into 2023, only a surprise change in central bank direction will help the common currency.
CADThe Canadian dollar is flat despite increases in the price of oil. Canadian Building Permits for November grew 6.8% vs. the forecast of 1.8% and the October reading of 2.4%.
ASIA/PACIFICThe Chinese renminbi strengthened modestly despite Chinese authorities guiding companies toward a depreciating currency. The Peoples Bank of China publication, Financial News, said the yuan will be under pressure.
The Japanese yen regained some of yesterday's losses on profit-taking. Still, the yen is 2% weaker over the past few weeks and many forecasters are expecting further weakness relative to the US dollar as US interest rates continue to rise.
For more analysis on FX markets or information regarding SVB's FX services:
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| Source: Bloomberg | |
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