Comments out of the Fed supporting interest rate hikes have pushed the US dollar higher against its peers. The Canadian dollar reversed its 6-day winning streak on the broad market trend. Data out of the UK compounded with the greenback’s strength has GBPUSD trading 0.7% lower. EURUSD broke below the 1.10 handle. USDJPY traded as high as 121.41.
“No matter what happens in life, be good to people. Being good to people is a wonderful legacy to leave behind.”
March 23, 2022
EUR/USD 1.0968 GBP/USD 1.3185 USD/CAD 1.2587 AUD/USD 0.7461 USD/JPY 120.71 USD/CNH 6.3875 USD/ILS 3.2280 USD/MXN 20.2580 USD/CHF 0.9345 USD/INR 76.3015 USD/BRL 4.8925 USD/SGD 1.3583 USD/DKK 6.7815 USD/SEK 9.4840 USD/NOK 8.7850
The Bloomberg dollar index is trading 0.3% higher as more Federal Reserve officials support Jerome Powell’s call to raise rates to curb high inflation. There will be several speakers today from the Fed including Powell at a Bank of International Settlements panel, Mary Daly and James Bullard.GBP
GBP is trading lower despite data released that showed higher than expected inflation. The UK’s inflation rose to a new 30-year high of 6.2%. Chancellor Rishi Sunak is due to speak later today.EURThe EUR/USD broke below the 1.10 level on broad USD strength. The Budget chief in the EU pushed back on the idea of raising new joint debt and the EU proposed stricter rules for replenishing the region’s natural gas reserves.CADThe Canadian dollar snaps its longest winning streak in a year on broad market trends. USD/CAD is trading 0.2% higher.ASIA/PACIFIC
USD/JPY continues to trade higher as the yen weakens for a fourth consecutive day. The yen is under pressure as investors speculate that aggressive rate hikes by the Fed will cause the monetary policy divergence to widen between the US and Japan.
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.