The US dollar recovered after dropping following yesterday’s Fed announcement. Risk appetite was bolstered yesterday, but quickly waned as concerns on China growth and increasing oil prices came to the forefront. The Bank of England increased rates to 1.0%, and surprised markets by forecasting a recession in 2023. The pound slid near 2% in the largest daily drop since the Brexit vote.
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FX Rates
May 5, 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 1.0558 GBP/USD 1.2408 USD/CAD 1.2762 AUD/USD 0.7178 USD/JPY 130.11 USD/CNH 6.6642 USD/ILS 3.4095 USD/MXN 20.0734 USD/CHF 0.9840 USD/INR 76.2625 USD/BRL 4.9665 USD/SGD 1.3806 USD/DKK 7.0512 USD/SEK 9.8574 USD/NOK 9.3911
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USD
As expected, the Fed raised rates 50bp in the steepest increase since 2000 and mentioned that similar hikes are plausible for June and July. The dollar initially dropped following the announcement and has since rebounded as risk appetite wanes. Jobless claims rose to 200K from 181K last week, and above consensus projections.
GBPBank of England announced a rate increase to 1.0% (+25bp) and in response sterling dropped 1.8% to the lowest level since July 2020. Investors looked past the rate increase and to the stark warning from the BoE of an impending recession and the possibility of double digit inflation by October of this year.
EUREuro dropped after comments from ECB policy maker Panetta said the economy is de facto stagnating. Germany factory orders dropped more than anticipated and uncertainty on energy supplies weighed on the economy.
CADCanadian dollar slipped versus greenback giving back some of yesterday’s gains on overall dollar buying.
ASIA/PACIFICUSD/JPY hangs right under the 130 handle in thin volumes as Golden Week continues.
A measure of Chinese growth – the Caixin China Services Purchasing Managers index dropped to 36.2 for April – the lowest since February of 2020.
For more analysis on FX markets or information regarding SVB's FX services:
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| Source: Bloomberg | |
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