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Financial markets wait for Thursday’s CPI reading for direction on how much the Fed will raise rates next month. The dollar is largely stronger in morning trading as Treasury interest rates continue to climb in anticipation of larger and faster Fed Funds rate increases. The price of oil is down but remains around the $90 level helping to support some commodity currencies.
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FX Rates
February 8, 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 1.1418 GBP/USD 1.3548 USD/CAD 1.2708 AUD/USD 0.7131 USD/JPY 115.41 USD/CNH 6.3717 USD/ILS 3.2217 USD/MXN 20.63 USD/CHF 0.9239 USD/INR 74.7475 USD/BRL 5.2671 USD/SGD 1.3452 USD/DKK 6.5198 USD/SEK 9.1486 USD/NOK 8.8198
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USD
The US dollar is catching a light bid in morning trading as US Treasury rates head higher. Financial markets are awaiting Thursday’s release of January CPI data where a reading of +7.3% YoY is expected. Fed watchers are speculating that the FOMC will be forced to raise rates by 50bps at the March meeting if inflation comes in higher than expected.
GBPThe British pound is slightly stronger this morning vs. the US dollar. FX traders are awaiting Thursday’s inflation data out of the US before adding to trading positions.
EURThe euro is heading toward a third day of losses relative to the US dollar with 1.14 seen as a key support level. Expectations the European Central Bank will begin to raise rates later this year may not be enough to lift the euro as the Common Currency remains in a broad range between 1.12-1.15.
CADThe Canadian dollar lost some ground vs. the US dollar on overall USD strength. Also, the price of oil is lower in morning trading as speculators close some bullish bets in front of a meeting between the US and Iran about the possible removal of sanctions if Iran gives up its nuclear weapons development program.
ASIA/PACIFICThe Australian dollar lost some ground to the greenback as oil prices slipped and US Treasury yields headed higher. FX markets now expect 1.25% worth of tightening from the Reserve Bank of Australia in 2022.
The Japanese yen has lost 12% vs the US dollar since the start of 2021 as FX markets expect the Fed to raise rates. With the US 10yr Treasury headed to 2%, the Japanese yen will likely weaken to more than 116 yen to a dollar.
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
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| Source: Bloomberg | |
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