Euro-area price pressures likely to remain sticky with “more work to do”, quarter of UK’s levelling up funds remain unspent.
-
FX Rates
March 6, 2023Rates 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.
Source: BloombergGBP/USD 1.2029 GBP/EUR 1.1304 EUR/USD 1.0642 USD/CAD 1.3594 EUR/CHF 0.9947 EUR/SEK 11.1681 EUR/NOK 11.0935 EUR/DKK 7.4434 USD/ILS 3.6547 AUD/USD 0.6737 NZD/USD 0.6186 USD/SGD 1.3452 USD/JPY 135.90 USD/CNH 6.9313 USD/INR 81.7288 EUR/ILS 3.8894 GBP/ILS 4.3964 USD/ZAR 18.2189
-
GBP
The UK government's levelling up department states that a quarter of funds planned for projects this year have gone unspent, due to the housing market turmoil and delays in delivery. Almost all the unspent cash relates to housing projects. This comes as inflationary pressures hit the governments flagship pledge to build 40 new hospitals by 2023. People close to the health departments stated that the Treasury now has some difficult decisions around how to fund the programme, as the NHS budget faces a shortfall of £2bn.
Cable gained on Friday reversing most of the Thursday’s losses to close the week up 0.8% as stronger-than-expected US services sector report supported the view US monetary policy will tighten. Cable sits in the 1.2030 region as we print. GBPEUR reversed some of the weeks earlier losses and closed the week up 0.1%. GBPEUR sits in the 1.1300 region as we print. UK car data and PMIS are out this morning.
EUREURUSD has opened the week higher, gaining 15bps during the morning session, as traders await a relatively quiet start to the week on the data front. The pair rose 1% last week, following a flurry of central bank rhetoric and further support for higher interest rates, as core inflation hit a record high. Speaking over the weekend, Christine Lagarde reiterated that price pressures are likely to remain “sticky in the short term” and therefore there is more “work to do” on rate hikes. Markets have priced in a further 1.5% worth of hikes over the year, which would see the deposit rate at 4%.
European stocks gained for a third consecutive session on the rate outlook and signs of economic resilience, the Stoxx 600 trades 0.2% higher on London open, led by retail and consumer products.
USDThe US are introducing a bill this week which would allow the US government to ban firms including services like TikTok. The reason cited for this is data protection, which is allegedly not a serious concern of Chinese firms.
Despite the ongoing headwinds facing the former president, Trump promised to “finish what we started” at a recent event. He promised this regardless of whether he is indicted, and as polls show that republicans would favour an alternative candidate.
The dollar lost ground through Friday, edging below the 104.6 handle. Friday was a good day for US equities with the NASDAQ and S&P500 finishing 2% and 1.6% higher respectively.
ASIA/PACIFICChina said it expects GDP to grow “around 5%” this year. Many economists see this goal as a modest target. Beijing’s aim is to create 12 million urban jobs.
Some commentators have warned that an urgent exit from the Bank of Japan’s ultra-loose monetary policy could be disruptive for markets. Ueda has increased hopes that the central bank may deviate from their current policy
ILSUSDILS trades slightly higher rebounding through the Asian session. The TA-35 has made a slight resurgence after weeks of decline, as it trades at the 1760 handle as we speak.
Data & EventsEuro-Area March Investor Confidence
UK Feb. Construction PMI
Euro-area Jan. Retail Sales
Risk Statement
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.
Source: Bloomberg | |
© 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. |