.png){kind=logo}
A strong start to the US corporate earnings season is supporting stocks, as investors’ concerns about a potential recession are allayed. Asian and European stocks are also in the green. Bond yields edged higher after yesterday’s big fall – the UST 10Yr currently trades at 2.88%. The euro was the biggest gainer against the USD overnight, the AUD and NZD the worst performers. This morning’s US jobless claims came in slightly above expectations. Preliminary PMI’s for April will be released tomorrow. Oil and gold are little changed.
-
FX Rates
April 21, 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 1.0885 GBP/USD 1.3065 USD/CAD 1.2483 AUD/USD 0.7426 USD/JPY 128.32 USD/CNH 6.4693 USD/ILS 3.2294 USD/MXN 20.1463 USD/CHF 0.9493 USD/INR 76.1588 USD/BRL 4.6220 USD/SGD 1.3610 USD/DKK 6.8393 USD/SEK 9.4297 USD/NOK 8.7986
-
USD
A risk-on mood based on upbeat earnings reports is having a positive impact on global stocks, and pushing up bond yields. The dollar has swung within a relatively wide trading range, but currently sits mixed overnight against its G-10 peers – the euro the strongest, the antipodean currencies (AUD and NZD) the weakest. The dollar versus the EM currencies was also mixed – the RUB and East European currencies the strongest, Asian currencies the weakest. Initial Jobless Claims for last week of 184K was close to 180K expected, and continues a declining trend in place since January 2021. Traders look forward to tomorrow’s US preliminary PMI data for April.
GBPThe UK pound is barely changed overnight, continuing to trade within the $1.2975 - 1.3150 range in place for the month of April. Market analysts are increasingly concerned that the UK will go into recession as inflation hits 9%. UK Retail Sales for March and preliminary PMI data for April are released tomorrow, and expectations are for weak figures.
EURThe euro is the top performing G-10 currency overnight, fueled by reports that traders are betting on three 25 bp rate hikes from the ECB this year. Rising inflation is expected to pressure the central bank to raise its benchmark rate above zero (currently at -0.50%) for the first time in 10 years. Hawkish comments from a ECB Governing Council member spurred the change in market sentiment.
CADThe Canadian dollar is up slightly overnight against the USD, reaching its best levels in two weeks. A slight improvement in US-CAD interest rate differentials in favor of Canada fueled CAD’s rally. Traders await tomorrow’s release of Industrial Production (Mar) and Retail Sales (Feb) for Canada – expectations are for weak figures.
ASIA/PACIFICThe yen weakened a bit overnight, the USD/JPY consolidating after peaking yesterday at 129.40, then selling off to a low of 127.46. Japan will publish inflation and PMI data later today.
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. |
