May 11, 2022
EUR/USD 1.0559 GBP/USD 1.2373 USD/CAD 1.2944 AUD/USD 0.7027 USD/JPY 130.18 USD/CNH 6.7406 USD/ILS 3.4295 USD/MXN 20.2792 USD/CHF 0.9894 USD/INR 77.24 USD/BRL 5.1185 USD/SGD 1.3851 USD/DKK 7.0465 USD/SEK 9.9790 USD/NOK 9.6530
The US consumer price index rose more than expectations. Forecasted CPI was 0.1% for April, but actuals came in at 0.3%. The DXY jumped 0.20% after the release, but has since evened out to yesterday’s levels. The dollar is trading lower on the day given the inflation news.GBP
Since the release of the US CPI data sterling had an initially slide of 0.80%. Cable has since recovered and the pair is trading around $1.23.EUR
ECB President Lagarde hinted the central bank could raise interest rates as soon as July since inflation continues to rise in the eurozone. Similar to the sterling, the euro fell after the initial release of the US CPI data, but has since recovered and is trading above yesterday’s rates.CADSince the US CPI announcement, the loonie has strengthened 0.71%. WTI Crude oil prices and Brent Crude are up 4.56% and 4.06% respectively.ASIA/PACIFIC
NZD/USD rates rose to start the day, gaining 1.19% against the dollar. AUD/USD rates also rallied this morning with the Aussie dollar up 1.40% on the day. The jump in oil prices help to boost the commodity linked currencies, as well as the general dollar weakness.
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.