The US dollar is broadly higher to start the second quarter with Non-Farm Payroll numbers and wage gains largely viewed as positive. The price of oil is down after the UK joined the US in announcing a release of strategic supplies. Russia and Ukraine agree to continue talks today by video providing further hope to investors that the war will not spread and even slowly wind down.
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April 1, 2022
EUR/USD 1.1043 GBP/USD 1.3096 USD/CAD 1.2505 AUD/USD 0.7502 USD/JPY 122.95 USD/CNH 6.3690 USD/ILS 3.1943 USD/MXN 19.7868 USD/CHF 0.9266 USD/INR 75.7887 USD/BRL 4.7030 USD/SGD 1.3567 USD/DKK 6.7347 USD/SEK 9.3538 USD/NOK 8.7618
The dollar is up after jobs data confirmed a strengthening US economy. Payroll data for March showed an increase of 431K new jobs vs. the forecast of 490K. The prior two months showed net revisions of +95K. Earnings showed a 5.6% increase YoY which exceeded the prior month's 5.2%.
ISM Manufacturing data will be released later this morning with forecasts calling for a continued expansion of 59.GBP
The pound sank vs. the US dollar after the US jobs data release. UK business confidence fell to a 17-month low since Russia invaded Ukraine - many firms are putting investment on hold. Businesses are preparing to weather 6% inflation by year-end.EUR
The euro drifted lower to start the quarter with losses picking up speed after the US jobs data. CPI data for March showed a year-over-year increase of 7.5% where expectations were for a 6.7% rise. Core CPI was 3.0% which was less than the 3.1% forecast.CAD
The Canadian dollar is weaker on overall US dollar bullishness. Also, the price of oil is down over 1%. CAD has traded as low as 1.246 a few times since the start of the year only to bounce higher again off those levels. With the supply of oil expected to remain tight throughout most of this year, CAD will likely test again the low and continue to strengthen when it finally breaks through.ASIA/PACIFIC
The Chinese renminbi weakened after four days of gains as the outlook for economic growth in Q2 was revised lower due to COVID related restrictions.
The start of a new fiscal year in Japan saw the yen weaken as investors view continued talks between Russia and Ukraine as positive leading to risk-on sentiment.
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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