US Treasury yields are higher following bond yields in Europe after Eurozone CPI data for May came in at 8.1%. The dollar is stronger on the increase in Treasury yield, month-end positioning, and lastly, on general risk-off sentiment. European Union leaders agreed to a significant reduction in the purchase of Russian oil sending crude prices higher.
Economic Data this Week:
Wednesday: ISM data for May, JOLTS Job Openings, Fed Beige Book
Thursday: ADP Employment Change for May, Weekly Initial Jobless Claims
Friday: Nonfarm Payrolls for May (+325K forecast), ISM Services for May
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FX Rates
May 31, 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 1.0707 GBP/USD 1.2576 USD/CAD 1.2660 AUD/USD 0.7162 USD/JPY 128.74 USD/CNH 6.6663 USD/ILS 3.3371 USD/MXN 19.6153 USD/CHF 0.9595 USD/INR 77.6362 USD/BRL 4.7177 USD/SGD 1.3721 USD/DKK 6.95 USD/SEK 9.8292 USD/NOK 9.4355
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USD
The US dollar is stronger after the long weekend as sentiment weakened due to higher than expected inflation numbers out of the Eurozone and a surge in the price of oil. This morning's March reading of the S&P CoreLogic 20-city house price index showed a year-over-year gain of 21% beating the 20% estimate.
Conference Board Consumer Confidence and Dallas Fed Manufacturing Activity for May due later this morning.
GBPThe British pound is weaker in the face of overall dollar strength. The UK is still wrestling with the aftermath of Brexit some six years after the vote to leave the EU. Investors see the UK economy facing a headwind for the foreseeable future as politics and trade cloud the investment outlook and direction of the British pound.
EURThe euro lost ground on overall US dollar strength. Eurozone inflation for May came in at 8.1% YoY which was higher than expected (+7.8%). Implied probability of the ECB’s benchmark rate being at least +0.50% by year-end now sits at 100%.
CADThe Canadian dollar lost ground to the US dollar on overall US dollar strength. Canada’s first quarter GDP number came in at +3.1% vs the 5.2% expected. Also, the price of oil continued to climb as European Union leaders agreed to ban the import of Russian oil via sea routes – leaving oil imported by pipeline in place – for now. The new ban effects 90% of oil imports from Russia to the EU and will be in place by year end.
ASIA/PACIFICThe Chinese renminbi gained after Beijing announced reduced mobility restrictions.
The Japanese yen weakened as higher US Treasury yields led to investors in Japan buying Treasuries.
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/foreign-exchange-advisory
| Source: Bloomberg | |
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