Major central bank decisions were released from the US Federal Reserve, the European Central Bank and the Bank of England. The Fed Reserve stated on Wednesday afternoon that the central bank would double the pace of tapering and also outlined a roadmap for 8 interest rate hikes through 2024. News from the ECB and BoE supported the EUR and GBP respectively and the BoE surprised markets with a rate hike of 10 bps. Bloomberg spot index is trading lower on a broad risk rally.
-
FX Rates
December 16, 2021Rates 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 1.1340 GBP/USD 1.3352 USD/CAD 1.2782 AUD/USD 0.7209 USD/JPY 113.86 USD/CNH 6.3779 USD/ILS 3.1073 USD/MXN 20.9520 USD/CHF 0.9205 USD/INR 76.0950 USD/BRL 5.7029 USD/SGD 1.3636 USD/DKK 6.5564 USD/SEK 9.0129 USD/NOK 8.9641
-
USD
The US dollar soared to two-week high following yesterday’s Fed policy decision which was largely in line with market expectations. The central bank stated that it would double the pace of tapering and outlined a plan for 8 interest rate hikes through 2024. Overnight the market risk sentiment shifted to risk-on placing downward pressure on the greenback. The Bloomberg spot index is trading almost 0.7% lower.
GBPThe Bank of England surprised markets by raising a key interest rate by 10 bps to 25 bps. There will be no press conference with this decision.EUREUR/USD is trading higher following ECB meeting. Decisions from the central bank were largely in line with expectations: deposit rate unchanged at -0.5%, main refinancing rate unchanged at 0%, APP pace boosted to EU40B for second quarter and extending PEPP reinvestments until at least end of 2024. One of the more impactful comments from the statement was “From October 2022 onwards, the Governing Council will maintain net asset purchases under the APP at a monthly pace of EUR20 billion for as long as necessary to reinforce the accommodative impact of its policy rates. The Governing Council expects net purchases to end shortly before it starts raising the key ECB interest rates.”
CADUSD/CAD dropped 0.5% the largest intraday drop in more than a week. The Canadian dollar strengthened alongside G-10 peers as market risk sentiment shifted to risk-on trading.ASIA/PACIFICThe Australian dollar fell earlier in the trading session following comments from RBA Governor Lowe suggesting that there may be no rate hikes next year. The currency pair has since reversed its trend on a broad risk rally.
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
Subscribe to receive the Daily FX Update in your inbox.
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.
| Source: Bloomberg | |
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. |
