The Fed’s hawkish stance continues this week, as Powell admitted that the Fed will need to catch up with inflation by hiking rates aggressively this year. European stock markets are on the rise helping both the euro and sterling. Initial reports from Q4 show Canada beating its growth expectations, as the economy recovers from the effects of Covid-19.
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FX Rates
February 1, 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 1.1254 GBP/USD 1.3492 USD/CAD 1.2715 AUD/USD 0.7083 USD/JPY 114.83 USD/CNH 6.3722 USD/ILS 3.1727 USD/MXN 20.5465 USD/CHF 0.9231 USD/INR 74.8000 USD/BRL 5.2837 USD/SGD 1.3506 USD/DKK 6.6100 USD/SEK 9.2810 USD/NOK 8.8700
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USD
The greenback slides for the second day as Treasury yields steady despite Powell’s hawkish post-FOMC press conference. Powell mentioned that he may revise inflation factors a few tenths of a percentage point. Traders are already focusing on Friday's job data.
GBPGBP/USD is higher amid strength in European stocks. Last week, sterling suffered losses, but the currency has reversed course and been climbing for the past three days. The BoE 25bps rate hike on Thursday appears to be fully priced in by investors.
EURThe euro has climbed for a second day to start February. A better risk sentiment in the eurozone is helping lift the euro ahead of the central bank policy meeting Thursday. No ECB hike is expected.
CADThe loonie recovers ground after a strong close Monday as the currency pair trades around 1.27. New data economic data from Canada shows that the economy beat growth expectations in Q4 2021. The central bank has reaffirmed that they will increase rates in 2022, with markets are pricing in a first Canadian rate hike in March.
ASIA/PACIFICThe AUD continues to rise as the marketplace is hawkish about rate hikes. The Aussie dollar is up 0.50% intraday and is trading around the $0.71 mark.
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 | |
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