In light trading ahead of the holiday weekend, investors’ risk-on mood persists – it’s been in place all week. Chinese tech shares spiked higher after Alibaba and Baidu reported better-than-expected sales. The S&P is on track for its first weekly gain in two months. Upbeat US economic data released this morning is helping fuel the equity buying – consumer spending for April rose 0.9% and for March it was revised to +1.4%, up from +1.1%. The dollar is broadly lower, and US T-bond yields are lower by 2 bps. Oil and gold prices are little changed. US financial markets are closed on Monday for Memorial Day.
May 27, 2022
Rates 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 1.0748 GBP/USD 1.2652 USD/CAD 1.2732 AUD/USD 0.7164 USD/JPY 126.86 USD/CNH 6.7095 USD/ILS 3.3446 USD/MXN 19.6075 USD/CHF 0.9556 USD/INR 77.56 USD/BRL 4.7519 USD/SGD 1.3680 USD/DKK 6.9215 USD/SEK 9.8005 USD/NOK 9.4432
The dollar is broadly lower amidst the market risk-on mood. The highest yielding currencies –NZD, CAD, GBP – were outperformers. A slew of US economic data for April released this morning were somewhat upbeat. While real personal spending slightly exceeded expectations, personal income and PCE deflator data met expectations. US financial markets will be close on Monday for Memorial Day.GBP
In line with broad weakness in the USD, the UK pound reached $1.2667 earlier in the morning, its highest versus the dollar in a month. PM Boris Johnson said that “the UK can dodge a recession in the months ahead even as the cost of living crisis sets the stage for a ‘difficult” period. There were no UK economic releases today.EUR
The euro changed little overnight, it managed to reach its highest level in a month at $1.0765. There were no significant events or economic data releases to impact the euro.CAD
The Canadian dollar edged higher, and in line with broad dollar weakness. USD/CAD dropped to 1.2728, its best level versus the dollar since early May. There were no significant events nor economic releases for Canada. Traders await next week’s slew of data releases, including Retail Sales, and GDP. More importantly, the Bank of Canada meets on June 1, and a 50 bps hike to 1.50% is expected.ASIA/PACIFIC
The CNY made solid gains overnight, USD/CNY reversing a 1-week uptrend. Upbeat sales data from Alibaba and Baidu fueled demand the currency. Traders await next week’s PMI data for May.
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
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.