Omicron tops headlines as countries hustle to contain the variant's spread and keep hospitalizations down. The US works to increase testing capacity, as the UK has not ruled out additional restrictions ahead of Christmas. The World Economic Forum has postponed its annual meeting in Davos, Switzerland. Financial markets are in a strong risk-off mood heading into year-end.
Economic news/events:
Monday: US Leading Index
Wednesday: UK GDP
Thursday: US Initial Jobless Claims, U of Mich sentiment, US Durable Goods Orders
-
FX Rates
December 20, 2021Rates 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 1.1300 GBP/USD 1.3230 USD/CAD 1.2947 AUD/USD 0.7120 USD/JPY 113.43 USD/CNH 6.3752 USD/ILS 3.1635 USD/MXN 20.7540 USD/CHF 0.9213 USD/INR 75.9150 USD/BRL 5.7045 USD/SGD 1.3663 USD/DKK 6.5820 USD/SEK 9.1265 USD/NOK 9.0480
-
USD
The dollar is trading a bit lower amid a drop in US treasury yields. The President’s Build Back Better plan seems dead in the water following Senator Manchin’s (D-WV) comments that he is unable to support it due to the massive price tag amid surging inflation and the speed at which it pivots from traditional energy sources. Dems are now on the hook to form a new proposal focusing on fewer programs.
The Fed's decision to increase its pace of tapering last week contributed to investor uncertainty in the 2022 outlook.
GBPHealth Secretary Sayid Javid commented that the UK will not rule out further restrictions before Christmas. The pound slipped 0.1% versus the dollar amid a drop in gilt yields.
EUREuro is stronger versus the dollar this morning amid short covering as eurozone braces for lockdown measures. Last week’s low of $1.1222 is seen as nearby support.
CADThe loonie slides alongside other commodity currencies as markets favor safe havens and oil prices are lower by more than 4% over the weekend.
ASIA/PACIFICThe JPY is up slightly within its role as a safe haven currency.
The Australian dollar dipped briefly below $0.71 amid investor jitters.
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. |
