The US dollar made a solid comeback on the first day of the year's last trading week and remained well-supported by the Fed's hawkish outlook, still indicating at least three rate hikes next year. COVID-19’s Omicron variant continues to spread rapidly around the world, which factors into investors' growing concerns. As data continues to be published on the new variant, it appears that the new strain is not causing more deaths and that hospitalizations are much lower than the Delta variant.
Key Economic Data and Events:
Monday:
US Dallas Fed Manufacturing Outlook Levels
Tuesday:
FHFA House Price Index MoM
European Union YOY Retail Sales
Wednesday:
US Pending Home Sales YoY
Thursday:
US Initial Jobless Claims
-
FX Rates
December 27, 2021Rates 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 1.1326 GBP/USD 1.3424 USD/CAD 1.2805 AUD/USD 0.7232 USD/JPY 114.77 USD/CNH 6.3757 USD/ILS 3,1185 USD/MXN 20.6700 USD/CHF 0.9177 USD/INR 75.05 USD/BRL 5.6645 USD/SGD 1.3568 USD/DKK 6.5646 USD/SEK 9.1095 USD/NOK 8.8485
-
USD
USD strengthened amid the Fed's hawkish outlook, indicating at least three rate hikes in 2022. The US dollar strengthened against major world currencies today except for sterling.
GBPGBP strengthened against the USD as rates climbed above 1.3430. Over the holiday weekend, the UK reported 120K new daily COVID cases. British Prime Minister Boris Johnson has ruled out additional coronavirus-related restrictions until at least the first week of 2022. Investor concern continues to grow as the infection spreads at a rapid pace.
EUREUR/USD is steady in light trading, volumes likely be kept to a minimum given the holiday week and the lack of key events on the macroeconomic calendar.
CADCAD weakened against the USD and was one of the worst performers against the greenback. Crude oil futures dropped 1% as traders weigh the impact of soaring coronavirus infections globally.
ASIA/PACIFICAUD/USD continues to follow its intraday descent and has dropped to two-day lows near 0.7200. Uncertainty over the continuing rise in Covid-19 cases due to the Omicron variant has overshadowed recent optimism.
The Japanese yen continues to weaken against USD for the third straight week. USD/JPY inches closer to 115.00, but has settled around 114.70 mid-way through the European markets.
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. |