Tech stocks are under pressure after Snap Inc, owner of Snapchat, warned it would miss Q2 revenue forecasts. The US dollar is mixed, gaining most against GBP and AUD, losing most against the JPY and CHF. UST 10yr yields dropped 6 bps to 2.79%. ECB President Lagarde said the ECB is reaching a “turning point” in its monetary policy, she expects to leave negative interest rates by September. Oil and gold prices are unchanged. US PMI for May released this morning was weaker than expected.
-
FX Rates
May 24, 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 1.0736 GBP/USD 1.2516 USD/CAD 1.2802 AUD/USD 0.7086 USD/JPY 12678 USD/CNH 6.6645 USD/ILS 3.3460 USD/MXN 19.8030 USD/CHF 0.9603 USD/INR 77.58 USD/BRL 4.7788 USD/SGD 1.3720 USD/DKK 6.9310 USD/SEK 9.7886 USD/NOK 9.5822
-
USD
The dollar index was little changed overnight, but USD was mixed versus specific currencies. USD gained 0.8% versus GBP and 0.5% versus AUD and NZD, but lost 0.5% versus the JPY. May’s PMI manufacturing and services PMIs were much lower than April’s figures and slightly less than expectations. Traders await FOMC minutes from the May 4 meeting to be released tomorrow.
GBPThe UK pound was the worst performing major currency overnight. GBP/USD dropped by 0.8% following news that UK Services PMI for May fell significantly below expectations, triggering fears of a recession for the UK. GBP’s recent rally from the May 13 $1.2156 low to yesterday’s $1.2601 high was stopped in its tracks.
EURThe euro traded in the fairly wide range overnight, but currently trades little changed from yesterday’s close. Selling was seen following release of Eurozone PMIs for May that were lower than April’s figures and less than expected. Euro buying came back after ECB President Lagarde made hawkish statements: “for the moment, we are not seeing a recession in the euro area,” adding that the ECB is likely to exit negative interest rates by end of Q3. After dropping to $1.0350 on May 13, the euro has rallied nearly 3%.
CADThe Canadian dollar weakened slightly versus USD, falling off its best levels since early May. After peaking at 1.3077 on May 12, USD/CAD fell to this morning’s low at 1.2765. Oil prices moved little. Traders await Thursday’s release of Retail Sales in Canada for March.
ASIA/PACIFICThe Japanese yen was the best performing G-10 currency, led by unexpectedly buoyant news on Japan’s department store sales.
The Chinese renminbi was little changed overnight, with no economic news to impact markets. However, the recent strengthening trend of CNY versus USD remains intact, despite a roll back of optimism related to President Biden’s comments about lowering tariffs on China. Biden’s comments on supporting Taiwan in the event of a war with China had little impact on the currency.
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. ©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. |
