The Bloomberg dollar index is trading higher as investors anticipate that the Federal Reserve will hike interest rates four times this year. The 10-year Treasury yield in the US strengthened to its highest levels since January 2020.
Economic Data this Week:
Wednesday: US CPI
Thursday: US Initial Jobless Claims
Friday: Univ. of Michigan Sentiment, US Retail Sales
January 10, 2022
EUR/USD 1.1293 GBP/USD 1.3542 USD/CAD 1.2672 AUD/USD 0.7164 USD/JPY 115.36 USD/CNH 6.3848 USD/ILS 3.1340 USD/MXN 20.4725 USD/CHF 0.9258 USD/INR 74.0375 USD/BRL 5.6835 USD/SGD 1.3577 USD/DKK 6.5866 USD/SEK 9.1350 USD/NOK 8.8865
USDThe Bloomberg dollar index strengthened 0.1% alongside US 10-year Treasury yields which increased 1bp to 1.79% after reaching the highest levels since January 2020. The dollar strengthens as traders anticipate global market volatility amidst tighter monetary policy for the US.GBPSterling traded weaker against the USD while soaring against EUR to levels not seen since February 2020. Foreign Secretary Liz Truss in the UK made a statement that she is prepared to override parts of the post-Brexit agreement on Northern Ireland if talks with the EU fail.EURThe common currency lost more than half its gains from Friday. The EUR/USD currency pair is trading under the 1.13 handle.CADThe Canadian dollar weakened against the USD with USD/CAD trading 0.2% higher. The Canadian dollar dropped alongside WTI crude futures which are trading almost 1% lower.ASIA/PACIFIC
The Japanese yen is trading stronger than the USD on investor sentiment that the US will tighten monetary policy and as US equity futures retreat. Inflation data out of the US and Fed speakers will be a focus for the markets later this week.
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See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory
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