Risk appetite remains low as Ukraine remains under attack and NATO remains ready to defend territory. The US dollar is on a blow-out rally versus many G-10 peers ahead of and following upbeat jobs data. Commodities continue to rally as price surge extends beyond oil.
“Worry does not empty tomorrow of its sorrows. It empties today of its strength.”
March 4, 2022
EUR/USD 1.0908 GBP/USD 2.3218 USD/CAD 1.2778 AUD/USD 0.7320 USD/JPY 115.27 USD/CNH 6.3246 USD/ILS 3.2668 USD/MXN 20.8375 USD/CHF 0.9192 USD/INR 76.1650 USD/BRL 5.0910 USD/SGD 1.3625 USD/DKK 6.8250 USD/SEK 9.9300 USD/NOK 9.0150
The dollar reached the highest level since June 2020 following payroll data, which showed the US added 678K jobs in February, beating expectations of a 423K rise. Unemployment eased to 3.8% - the lowest level since 1970. The tight labor market supports the Fed’s decision to raise rates.GBP
GBP/USD falls to two-month lows under significant selling pressure. The pair has broken a key support level at $1.3270, and bearish sentiment is expected to continue.EUR
EUR/USD remains bearish as the pair falls below psychologically important $1.10, and dips briefly below $1.09. Experts expect losses to continue below this 21-month low.CAD
Canadian dollar fell versus the greenback even amid increased pressures on oil prices. The cross advanced 0.5% as the dollar is on a blow-out rally following strong jobs data and a bid for safe haven assets.ASIA/PACIFIC
USD/JPY is marginally lower, as the pair remains range-bound as safe haven assets retain buying interest.
The Aussie extends its rally, and has risen an impressive 1.37% versus the dollar this week on surging commodity prices and upbeat economic data releases for Australia.
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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