April 7, 2022
EUR/USD 1.0924 GBP/USD 1.3075 USD/CAD 1.2574 AUD/USD 0.7484 USD/JPY 123.92 USD/CNH 6.3631 USD/ILS 3.2276 USD/MXN 20.1335 USD/CHF 0.9328 USD/INR 75.96 USD/BRL 4.7382 USD/SGD 1.3603 USD/DKK 6.8058 USD/SEK 9.4333 USD/NOK 8.7760
Yesterday’s FOMC minutes revealed that the Fed is preparing to move more aggressively to fight inflation and included that many members were in favor of a 50 basis point hike in May. Also mentioned in the minutes is that the Fed would likely look to reduce its balance sheet after the May meeting at a rate of $95 billion a month. US Jobless claims fell last week and matched the lowest levels since 1968.GBPGBP/USD rates remain stable from yesterday holding near the $1.30 mark. Overall USD strength in the marketplace is pressuring the pair, but the sterling is remaining stable compared to other currency pairs.EUR
The euro is weakening for the sixth consecutive day, with the lowest levels since March 8. Since the Fed minutes were released yesterday afternoon, the euro remains under pressure due to overall dollar strength.CAD
The loonie continues to weaken against the greenback today, despite oil prices continuing to advance at the start of the trading day. Oil prices hit a high of $104/barrel yesterday, but then slid to $96. It has since rebounded 1.60% to $98/barrel, while the loonie is down 0.15% intraday.ASIA/PACIFIC
AUD/USD continues to slide this week from Tuesday’s high. The Fed's hawkish outlook pressured the commodity-linked currency, but rising commodity prices and the RBA’s hawkish comments toward rate increases have helped to limit additional losses for the aussie dollar.
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
By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
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.