The FX markets are focused on the diverging interest rate policies of the world’s central banks. As the US dollar strengthens, the Japanese yen is trading at its weakest point in five years as the Bank of Japan is expected to keep rates low. The euro remains close to 18-month lows as the European Central Bank is also keeping in place a highly accommodative monetary policy. The Fed is now expected to raise rates three times next year.
“Self-praise is for losers. Be a winner. Stand for something. Always have class, and be humble.”
-
FX Rates
January 4, 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 1.1284 GBP/USD 1.3523 USD/CAD 1.2708 AUD/USD 0.7215 USD/JPY 116.31 USD/CNH 6.3767 USD/ILS 3.0867 USD/MXN 20.5616 USD/CHF 0.9166 USD/INR 74.5550 USD/BRL 5.6915 USD/SGD 1.3564 USD/DKK 6.5914 USD/SEK 9.1168 USD/NOK 8.8676
-
USD
The dollar remains strong. ISM Manufacturing data and JOLTS job openings data are due out later this morning.
GBPThe British pound continued to climb vs. most every currency as the Bank of England is expected to raise interest rates before most central banks. Despite contentious Brexit discussions, the eurozone remains a very important trading partner for the UK and the British pound is trading at its strongest level in two years vs. the euro.
EURThe euro lost ground as global investors see the European Central Bank holding interest rates at or close to zero for much longer than other central banks. The British pound and the US dollar are both stronger again today continuing a trend from last year.
CADThe Canadian dollar was weaker this morning on new virus restrictions put in place in Ontario. But CAD rebounded as OPEC+ participants agreed to continue to slowly increase the global supply of oil reflecting higher expected demand. The price of oil rose on the news as recent production levels confirm oil-producing nations continue to stick to production targets.
ASIA/PACIFICThe Japanese yen lost ground vs. the US dollar this morning and is now trading at its weakest level in five years. The combination of a robust outlook for the global economy and the central bank of Japan keeping interest rates low is expected to further weaken the yen.
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. |
