Stocks rallied, bond yields rose and the US dollar is broadly weaker on news that President Biden may reconsider tariffs on China. Investors see the potential de-escalation of the China-US trade war as a reason to be optimistic towards risk assets. The euro is higher following increasing hawkish comments from ECB President Lagarde. The Australian dollar gained on news of a new majority government. Traders are focused on a slew of key economic data this week here and abroad, and on an expected stream of comments over the next few days from global financial elite out of Davos, Switzerland, where the World Economic Forum is taking place for the first time since the pandemic.
Monday
Canada consumer confidence, Japan PMIs
Tuesday
US new home sales, Eurozone PMIs, UK PMIs
Wednesday
FOMC minutes, ECB publishes Financial Stability Review
Thursday
US GDP, initial jobless claims, Canada retail sales, Japan CPI
Friday
US core PCE, personal income and spending, wholesale inventories, University of Michigan consumer sentiment
-
FX Rates
May 23, 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 1.0665 GBP/USD 1.2585 USD/CAD 1.2786 AUD/USD 0.7108 USD/JPY 127.57 USD/CNH 6.6611 USD/ILS 3.3372 USD/MXN 19.7977 USD/CHF 0.9649 USD/INR 77.51 USD/BRL 4.7978 USD/SGD 1.3735 USD/DKK 6.9779 USD/SEK 9.8435 USD/NOK 9.6275
-
USD
The dollar is broadly weaker in a risk-on market triggered by news that President Biden my reconsider tariffs on China imposed by the Trump administration. Commodity currencies outperformed most others, the euro and UK pound are up nearly 1% since Friday’s close. Since peaking on May 13, the US index (DXY) has dropped about 2.75%.
GBPThe UK pound is higher by nearly 1%, in line with broad dollar weakness. Since bottoming at $1.2156 on May 13th, GBP is up about 3.5%. Prices of UK houses rose to a fresh record high for the fourth straight month, though analysts see signs of the market nearing a top.
EURThe euro is up about 0.80% from Friday’s close, and in line with broad dollar weakness. Since bottoming at $1.0350 on May 13th, the euro is up over 3%. ECB President surprised the markets by announcing in advance interest rate hikes in July and September, indicating that negative interest rates will be gone by the end of Q3 and monetary policy will be tightened until a “neutral” rate is reached.
CADThe Canadian dollar rose against the USD, but underperformed most other G-10 currencies even with a slightly higher price in oil. Since peaking at 1.3077 on May 12th, the USDCAD has dropped about 2.25%. Traders await Thursday’s release of Retail Sales for March.
ASIA/PACIFICThe Japanese yen is basically flat since Friday, the poorest G-10 performance. The USDJPY has been consolidating since peaking at 131.25 on May 9th.
Test sectionThe way to go about this is to move quickly.
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
Subscribe to receive the Daily FX Update in your inbox.
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.
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. |