This week's economic events
Wednesday: MBA Mortgage Applications for last week
Thursday: Initial Jobless Claims for last week, S&P PMI for June
Friday: Univ. of Michigan Consumer Sentiment for June, New Home Sales for May
June 21, 2022
EUR/USD 1.0550 GBP/USD 1.2273 USD/CAD 1.2944 AUD/USD 0.6964 USD/JPY 136.19 USD/CNH 6.6966 USD/ILS 3.4576 USD/MXN 20.2023 USD/CHF 0.9675 USD/INR 78.07 USD/BRL 5.1685 USD/SGD 1.3850 USD/DKK 7.0525 USD/SEK 10.0935 USD/NOK 9.7955
After a long weekend in the United States the dollar is slightly weaker across the board as risk sentiment turns positive.
Biden will decide this week on whether to declare a federal gasoline tax holiday, to cool energy driven inflation. He also reiterated his belief that a US recession was not an inevitability.
US Existing Home Sales for May are due out later this morning.GBP
The pound traded stronger over the past couple days compared to the US dollar. A return of risk sentiment helped lift Cable. The UK faces widespread rail disruption as the largest strike in 30 years begins.EUR
The euro was stronger yesterday and again this morning. The ECB’s anti-crisis tool shows the bank’s determination to defend the euro’s integrity. They will also try to protect the economic and political unity of the bloc with the anti-fragmentation tool.
The EU is set to formally grant Ukraine candidate status later this week. Meanwhile, Sweden and Finland continue talks with Turkey to join NATO.CAD
The Canadian dollar gained slightly on the US dollar as the price of oil is $2 higher at around $111/bbl this morning after having hit $123 last week. USD/CAD has been trading off expectations of central bank activity and has all but ignored the price of oil over the past two weeks.ASIA/PACIFIC
The Japanese yen hit 136 and a fresh 24-year high. Some market participants see 140 within reach at which point the Bank of Japan will be forced to change policy.
RBA Chief Lowe signaled he will only raise rates by 25 basis-points at the July meeting. This quickly saw markets scrap bets of a 75 basis-point jump.
China’s outbreaks are shifting to its south coast, with a flare-up in Shenzhen triggering lockdowns and mass-testing.
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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