Today, President Biden may announce a ban on imports of Russian oil, and do so without participation of our European allies. Crude oil prices rose to $125 a barrel on the news. Global stocks are mixed – Asia mostly lower, Europe mixed, US S&P 500 opening slightly higher. The US dollar is mixed against peer currencies. The euro moved higher following news that the European Union plans to issue a joint bond to finance energy and defense spending. Market volatility, particularly in commodity prices, is at multi-year highs.
Today is International Women’s Day 2022 – a global day celebrating the social, economic, cultural and political achievements of women.
March 8, 2022
EUR/USD 1.09 GBP/USD 1.3124 USD/CAD 1.2848 AUD/USD 0.7284 USD/JPY 115.56 USD/CNH 6.3186 USD/ILS 3.3053 USD/MXN 21.4491 USD/CHF 0.9284 USD/INR 76.9150 USD/BRL 5.0948 USD/SGD 1.3640 USD/DKK 6.8363 USD/SEK 9.9765 USD/NOK 8.9832
The US dollar is mixed against peer currencies as markets remain in a severe underlying risk-off mood. The proposed US ban on Russian oil will probably be without buy-in from our European allies, as the US imports only 2% of its oil needs from Russia, whereas in Europe it’s 40%. UST yields are climbing higher, trading at 1.85% after last week’s low of 1.68%. Traders await US inflation data on Thursday.GBP
The UK pound dropped to a 17-month low at $1.3082, but the current GBP/USD rate is little changed overnight. UK gasoline prices were reported to have risen at the fastest pace in 13 years and house prices at the strongest annual pace since 2007. Traders await a slew of economic releases later this week.EUR
The euro is firm after news of a large EU bond-sale proposal, which may be presented next week, to finance energy and military infrastructure. Economic data for the eurozone came in as expected – Employment QoQ rose 0.5% and GDP QoQ expanded by 0.3%. A measure of Fixed Capital Investment in the eurozone rose much higher than expected (3.5% QoQ).CAD
The CAD trades near yesterday’s close despite soaring oil prices. Canada’s trade balance moved back into surplus in January as imports in the auto sector declined sharply. Traders await Friday’s slew of economic data for Canada.ASIA/PACIFIC
The Australian dollar underperformed as reports that large leveraged FX traders positioned “long” AUD were forced to unwind when the AUD/USD broke below $0.73.
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.