The US dollar is slightly stronger driven by the 10-year Treasury yield pushing over 2.75%. The Japanese yen added to its losses as investors do not expect the Bank of Japan to deviate from its highly accommodative monetary policy. The Chinese renminbi lost ground to the US dollar as the 10-year Treasury yield surpassed its Chinese equivalent government bond for the first time since 2010.
Economic Data this Week:
Tuesday: CPI for March (YoY +8.4% forecast)
Wednesday: PPI for March (YoY +10.6% forecast)
Thursday: March Retail Sales (MoM +0.6% forecast), Initial Jobless Claims, Univ. of Michigan Consumer Sentiment, European Central Bank meeting.
Friday: Industrial Production for March, Empire Manufacturing for April
-
FX Rates
April 11, 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 1.09 GBP/USD 1.3031 USD/CAD 1.2603 AUD/USD 0.7440 USD/JPY 125.75 USD/CNH 6.3673 USD/ILS 3.2159 USD/MXN 20.0571 USD/CHF 0.9340 USD/INR 75.955 USD/BRL 4.7251 USD/SGD 1.3646 USD/DKK 6.8241 USD/SEK 9.4557 USD/NOK 8.7578
-
USDThe dollar posts early gains to start the week as investors prepare for a busy week of economic data. With another high inflation reading expected tomorrow, the financial markets are pushing US Treasury rates higher which is in turn supporting the dollar. Corporate earnings for Q1 will continue to pour in this week with investors watching for how companies perform in a higher inflationary environment.GBPThe British pound bounced along 1-year lows versus the US dollar. UK Industrial Production figures for February disappointed as did GDP data.EURThe euro strengthened as Macron led the first round of the presidential election. Financial markets see a continuation Macron's presidency as a more stable path compared to a victory by the right-wing Marie Le Pen who once favored France quitting the euro. The second round of the election will be in two weeks.CAD
The Canadian dollar slipped as the price of oil dropped 3%. Since the March 24 high of $115/bbl, the price of oil has fallen 18%.
ASIA/PACIFICThe Japanese yen added to losses which have seen the yen weaken by over 9% since March 4. Yields on US Treasuries continue to move higher drawing in Japanese investors who sell the yen to buy dollars.
China may cut its benchmark interest rate this week to support the economy as COVID-related lockdowns suppress economic activity. The renminbi gave up some ground overnight as March inflation data in China came in higher than expected.
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 | |
This article is intended for U.S. audiences only. ©2023 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. |
