.png){kind=logo}
Higher inflation data yesterday and today combined with fear of a protracted Russian/Ukrainian war sent the US dollar higher. The Japanese yen is back at 20-year lows after the Bank of Japan affirmed loose monetary policy. The price of oil increased and is now 10% higher over the past two days. Bank of Canada meets later this morning and is expected to hike interest rates by 50bps.
"Strive not to be a success, but rather to be of value."
-
FX Rates
April 13, 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 1.0824 GBP/USD 1.3015 USD/CAD 1.2655 AUD/USD 0.7405 USD/JPY 125.77 USD/CNH 6.3670 USD/ILS 3.2166 USD/MXN 19.8121 USD/CHF 0.9336 USD/INR 76.1837 USD/BRL 4.7005 USD/SGD 1.3644 USD/DKK 6.8707 USD/SEK 9.5463 USD/NOK 8.8469
-
USD
The US dollar is up on safe haven buying and on expectations the Federal Reserve will have to aggressively raise interest rates to combat higher inflation. This morning's PPI data for March came in at 11.2% YoY which is the highest since 2010.
GBPThe British pound is at the weakest level since Q4 2020. UK inflation surged to 7% in March, the highest level in three decades as the cost-of-living crisis continues to threaten the economic recovery from the pandemic. The reading was the sixth consecutive print above expectations, driven by an increase in fuel, metals and used car prices. Economists predict the rise will continue as the increase in household energy bills take effect this month.
EURThe euro has broken through the lows of this past March (1.0875) and may test the lows reached during the initial scare of the pandemic. The longevity of the Ukraine/Russia conflict has heightened concerns of a longer war and the potential for the conflict to spill over into other countries. EUR/USD dropped yesterday afternoon after Vladimir Putin cited that peace talks are at a “dead end”.
CADThe Canadian dollar is weaker this morning despite the price of oil increasing to well over $100/bbl. Later this morning, the Bank of Canada is widely expected to increase its overnight benchmark rate by 50bps. The rate hike is priced into markets, so it may not move the FX rate unless Canadian officials suggest a faster and higher path of interest rate increases.ASIA/PACIFICThe Bank of New Zealand raised rates 0.5%, the biggest rise in 22 years as price pressures continue to influence policy. The NZD/USD gained 0.7% initially on the release, however, has reversed since.
The Indian rupee sank after the nation's February Industrial Production figures (+1.7%) missed estimates (+2.7%) and suggest further headwinds for the Indian economy.
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. |
