Volatile FX markets close out the week with US dollar stronger vs most currencies. The US jobs data added to an already stronger US dollar after yesterday’s sell-off. China signals support for their economy and expectations of a stronger yuan. Consistently strong oil prices can’t help commodity currencies in the face of bullish dollar sentiment. UK market closed again today for Queens Platinum Jubilee celebrating Queen Elizabeth II’s 70 years on the throne.
“When life seems hard, the courageous do not lie down and accept defeat; instead, they are all the more determined to struggle for a better future.”
June 3, 2022
EUR/USD 1.0726 GBP/USD 1.2543 USD/CAD 1.2558 AUD/USD 0.7232 USD/JPY 130.54 USD/CNH 6.6603 USD/ILS 3.3324 USD/MXN 19.5202 USD/CHF 0.9618 USD/INR 77.6313 USD/BRL 4.8030 USD/SGD 1.3742 USD/DKK 6.9330 USD/SEK 9.7526 USD/NOK 9.4407
After yesterday’s losses, the US dollar gained in volatile FX trading to end the week. The unemployment rate for May remained at 3.6% while Nonfarm Payrolls added 390K jobs vs. the 318 expected. The ISP Services index for May is due out later this morning.GBP
UK markets are closed again today for the Queen’s Platinum Jubilee Bank Holiday.EUR
The euro weakened against the dollar despite more FX market participants expecting the European Central Bank to make a 50bps rate increase sometime before fall of this year.CAD
The Canadian dollar is flat in volatile trading after comments overnight by a Bank of Canada governor suggesting a rate increase above the neutral level may be necessary. The price of oil rose after the US payroll numbers came in better than expected.ASIA/PACIFIC
The offshore Chinese renminbi strengthened overnight to start the trading day in Asia as prior day comments by officials were interpreted as supporting the renminbi.
USD/JPY again surged over the 130 level in early US trading with the recent high of 130.81 within sight. US Treasury yields increased pressuring the yen.
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
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.
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.