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After a week of dollar strength stemming from the hawkish FOMC meeting last week, it’s clear the Fed is most interested in tackling growing inflation concerns, and possibly more aggressively than earlier anticipated. The euro gained for the second session in a row, supported by a repricing of a potential interest rate hikes by the ECB later in the year. The AUD has rallied the most of all the majors ahead of the RBA interest rate decision on Tuesday.
Economic Updates:
Monday: EU GDP Growth Rates
Tuesday: EU December Unemployment Rate, US JOLTS Job Opening, US ISM Manufacturing, RBA Interest Rate Decision
Wednesday: Balance of Trade Reports
Thursday: BOE Interest Rate Decision
Friday: US Jan Unemployment Rate, CAD Jan Unemployment Rate
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FX Rates
January 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 1.1200 GBP/USD 1.3442 USD/CAD 1.2741 AUD/USD 0.7066 USD/JPY 115.40 USD/CNH 6.3782 USD/ILS 3.1805 USD/MXN 20.6460 USD/CHF 0.9306 USD/INR 74.6200 USD/BRL 5.3410 USD/SGD 1.3518 USD/DKK 6.6440 USD/SEK 9.3220 USD/NOK 8.9120
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USD
The dollar is trading near session lows with amid a slight risk-on mood. The DXY is down 0.350% to start the week following last Friday's Core PCE Price Index, which climbed 4.9% YoY. The Street's biggest banks are at odds over how fast the Fed will raise rates in 2022 after Powell signaled that it could be more aggressive that previously anticipated.
GBPGBP/USD is trading above $1.34 and its 50-day moving average, as investors prepare for the BOE policy meeting later this week. The improved market move is due to the investors’ expectations of 5 rate hikes from the BOE in 2022.
EUREurozone GDP reports were in line with expectations and as a result there is a slight jump in the euro to begin the week. On Friday, the euro dropped as low as $1.1121, which was its lowest level since June 2020. EUR/USD has since rallied, and is trading near $1.12.
CADUSD/CAD continues its intraday decent to near 1.2720. Oil is on track for the biggest January gain in at least 30 years, as demand continues to outpace fresh supply, and amid ongoing geopolitical risks.
ASIA/PACIFICAUD extended it advances over the USD as investors prepare for a more hawkish shift from Australia's central bank at its rate decision this Tuesday.
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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| Source: Bloomberg | |
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