The US Nonfarm Payroll report for January was released this morning. Amazingly, an increase in jobs of 467K was reported versus expectations of 125K, and December’s revision was up to 510K. US T-Bond 10Yr yields jumped 5 bps to 1.89%, the S&P improved from an earlier sell-off and the dollar rallied. The euro is still firm from yesterday’s hawkish comments by the European Central Bank and is on track for its best week since the start of the pandemic. Oil prices continue to climb to a fresh seven-year high.
“Through endurance we conquer.”
-
FX Rates
February 4, 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 1.1434 GBP/USD 1.3521 USD/CAD 1.2775 AUD/USD 0.7062 USD/JPY 115.28 USD/CNH 6.3650 USD/ILS 3.2026 USD/MXN 20.7075 USD/CHF 0.9240 USD/INR 75.000 USD/BRL 5.3257 USD/SGD 1.3461 USD/DKK 6.5065 USD/SEK 9.1450 USD/NOK 8.7755
-
USD
This morning the US Nonfarm Payroll report showed an increase in jobs of 467K, which handily beat expectations of 125K. Traders awaited this data as it was an indication of how the US economy is faring from the Omicron variant. The positive news has resulted in the DXY jumping 0.25%.
GBPAfter a strong week for sterling, GBP/USD started today moderately down due to the overall stronger dollar. As expected by traders, the BoE raised interest rate by 0.25% on Thursday. Several members of the BoE voted for a 0.50% increase, which would have been the largest rate hike for the UK in the past 25 years.
EUREUR/USD continued to climb following yesterday's announcement from the ECB that they plan to review updated inflation data at their next meeting in March. This announcement was important as Europe has been in a negative interest rate environment for nearly a decade. This announcement has caused a euro rally, which was muted by positive jobs data out of the US.
CADCanadian employment fell by more than 200K jobs in January, which was a larger miss than expected. Unemployment was forecasted at 6.3%, but it came in at 6.5%. Oil prices reached new highs for the week with intraday gains of 1.3%. Despite the uptick in oil prices, the loonie depreciated 0.77% against the dollar with USD/CAD climbing to the upper end of 1.27.
ASIA/PACIFICThe AUD/USD pair had a sell-off today after the RBA indicated a patient approach toward rising inflation in Australia and from rising US bond yields.
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. ©2022 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. |