Market participants await this afternoon’s release of the Fed’s recent policy meeting to assess the speed of monetary tightening. Stocks are lower following comments by Chinese Premier Li that the nation’s economic problems are worse than they were in early pandemic 2020. The dollar is broadly stronger, a bounce off yesterday’s lowest levels in a month. US T-bond yields continue to fall, currently trading at 2.73%. Gold is trading lower by $15 at $1855 per oz and WTI oil up $1.25 at $111 per barrel.
-
FX Rates
May 25, 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 1.0664 GBP/USD 1.2516 USD/CAD 1.2849 AUD/USD 0.7057 USD/JPY 127.11 USD/CNH 6.7050 USD/ILS 3.3558 USD/MXN 19.8719 USD/CHF 0.9617 USD/INR 77.52 USD/BRL 4.8390 USD/SGD 1.3762 USD/DKK 6.9755 USD/SEK 9.8805 USD/NOK 9.6200
-
USD
The dollar is stronger across the board, its first solid move up in two weeks. Trading is light, as markets await the Fed’s minutes from its early May meeting to assess the pace of monetary tightening. Economic data released this morning – both Durable and Capital Goods Orders for April – were lower than expected and March’s data. Traders await tomorrow’s GDP Q1, Personal Consumption and Initial Claims data.
GBPThe UK pound fell slightly in line with the dollar’s broad strength. There were no UK economic data releases today nor over the remainder of the week.
EURThe euro declined following comments from ECB members who said that the pace of monetary tightening by the ECB would be gradual, pointing to recent weak economic data. There are no economic releases for the Eurozone this week.
CADThe Canadian dollar declined, in line with broad strength in the US dollar and despite higher oil prices. Traders await tomorrow’s Retail Sales data.ASIA/PACIFICThe Chinese yuan moved lower overnight versus the USD after Chinese Premier Li said the China’s economy is experiencing difficulties worse than in 2020, and following news that Beijing recorded an increase in Covid cases.
The USD/JPY is slightly higher overnight. Yesterday USD/JPY dropped to 126.36, its lowest level since mid-April.
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. ©2023 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. |
