Ukraine rejects surrender demands over Mariupol as Biden confers with European leaders; US and European futures slip, following a jump in Oil.
March 21, 2022
GBP/USD 1.3151 GBP/EUR 1.1897 EUR/USD 1.1054 USD/CAD 1.2592 EUR/CHF 1.0289 EUR/SEK 10.4309 EUR/NOK 9.6614 EUR/DKK 7.4417 USD/ILS 3.2372 AUD/USD 0.7391 NZD/USD 0.6897 USD/SGD 1.3558 USD/JPY 119.23 USD/CNH 6.3685 USD/INR 76.1113 EUR/ILS 3.5782 GBP/ILS 4.2570 USD/ZAR 14.9492
Boris Johnson has announced a drive to expand the UK’s nuclear and wind energy production, meeting senior executives from these industries, to find alternative energy sources.
Rishi Sunak has promised to focus on helping Britons through the cost-of-living crisis ahead of his mini-budget on Wednesday. He maintained that the upcoming tax hike will go ahead.
GBPUSD trades down -0.1% and EURGBP trades up 0.18%.EUR
Expectations of an ECB rate hike in 2022 are realistic, following comments from council member Klass Knot. Some council members are beginning to back a rate increase prior to the end of net-asset purchases.
Germany has reached a deal to buy Qatari gas to sever its energy dependency on Russia. Energy remains top of the agenda for Brussels however, energy market intervention looks unlikely. Macron retains a large lead ahead of the French presidential elections and is a favourite in both rounds.
EURUSD trades flat intraday.USD
Biden will talk with major European leaders today to co-ordinate a joint response to the war in Ukraine. Further talks between Kyiv and Moscow are likely following small progress made by each side.
Some have warned that the Fed could break the US economy if it rose rates beyond 2.5%.
While market makers have warned of threats to the dollar’s supremacy, offering or finding a valid replacement would be challenging. The dollar continues to make up over 50% of global foreign exchange reserves.ASIA/PACIFIC
Chinese banks have left borrowing costs unchanged, with the PBOC expected to find other areas to ease fiscal policy. Hong Kong begins to see easing of its latest covid rates as it reels back mass testing and cuts travel bans. Worries increase about possible Chinese intervention against Taiwan.
Asian equities have wavered through the Asian session. The Nikkei closed up 0.65% however the Hang Seng, CSI, and ASX all closed lower.ILS
USDILS trades lowers at 3.237 down roughly 0.4%, as the pair slipped away from recent highs of 3.3 over last week.Data & Events
DE – Dec PPI
ECB’s Lagarde, Makhlouf and Nagel speak
FT’s Commodities summit
Trading in financial instruments may involve a high degree of risk and may not be suitable for all investors. Trading in financial instruments can result in both loss and profit. Investors should carefully consider whether financial instruments suit their needs, financial resources and personal circumstances.
The information contained in this material is solely for informational purposes only and it is not and should not be construed as an offer or a solicitation of an offer to buy or sell any financial instruments and cannot be relied upon as a representation that any particular transaction necessarily could have been or can be effected at the stated prices. This material does not contrue advice.
For more analysis on FX markets or information regarding SVB's FX services:
0800 023 1440 from within the UK
+44 207 367 7880 from overseas
See all of SVB's latest FX information and commentary.
© 2023 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. 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).
Silicon Valley Bank is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. FC029579. Silicon Valley Bank is authorised and regulated by the California Department of Business Oversight and the United States Federal Reserve Bank; authorised by the Prudential Regulation Authority with number 577295; and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. Silicon Valley Bank is a subsidiary of SVB Financial Group, a Delaware corporation and is an affiliate of SVB Financial Group UK Limited. SVB Financial Group UK Ltd is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. 5572575 and is authorised and regulated by the Financial Conduct Authority, with reference number 446159. SVB Financial Group and its subsidiary Silicon Valley Bank are members of the Federal Reserve System and Silicon Valley Bank is a member of the FDIC.
Your eligible deposits with Silicon Valley Bank UK are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered. Please click here for further information or visit http://www.fscs.org.uk. For more detailed information about coverage and limits, please review our FSCS Information Sheet at http://www.fscs.org.uk.
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. Opinions expressed are our opinions as of the date of this content only. The material is based upon information which we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.