Biden claims there is still ‘room for diplomacy’ in Ukraine crisis, despite tensions easing. UK inflation rises to 5.5%, the highest rate since 1992.
-
FX Rates
February 16, 2022Rates 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 1.3560 GBP/EUR 1.1917 EUR/USD 1.1378 USD/CAD 1.2693 EUR/CHF 1.0526 EUR/SEK 10.5459 EUR/NOK 10.1245 EUR/DKK 7.4424 USD/ILS 3.1974 AUD/USD 0.7173 NZD/USD 0.6649 USD/SGD 1.3440 USD/JPY 115.71 USD/CNH 6.3353 USD/INR 75.0250 EUR/ILS 3.6390 GBP/ILS 4.3369 USD/ZAR 15.0702
-
GBP
UK inflation reached the highest levels since 1992, rising above forecasts (5.4%), to print at 5.5% annually through to January. Since rising above the BOE’s 2% target eight months ago, inflation has exceeded market expectations seven times, with this reading likely to bolster expectations of consecutive 25 basis point rate hikes throughout the first half of 2022.
The FTSE closed yesterday up 1.03% correlating with a boost to European equities following easing of Russia-Ukraine tensions. Sterling trades 0.2% higher against the US Dollar as we print.
EURThe Eurozone’s monthly trade balance was hit by a 53% year-on-year rise in imports from China, with imports rising 36.7% in December. Eurozone GDP rose 1.4% in Q4 2021.
European equities were bolstered by a withdrawal of some troops from the Ukrainian border by Putin. This comes as a reversal in the trend of failed diplomatic excursions by European leaders. EURUSD has capitalized on the improving market mood, testing the 1.1400 level amid the de-escalation of conflict.
USDFOMC minutes from the January meeting will be released today, with investors eager to understand the feds inflation outlook and the causation behind Jerome Powell’s hawkish shift.
The financial stability board have raised concerns that imposing potential sanctions on Russia, may risk undermining global security and disrupt payment flows. This comes as Biden stated there is still room for diplomacy to succeed in easing tensions.
US equity futures trade down this morning with NASDAQ and S&P500 -0.3% and -0.22% lower as tensions ease in Europe.
ASIA/PACIFICSouth Korea added 1.14 million jobs in January from the year before, while the jobless rate fell 0.2% in December.
The Bank of Japan will likely raise the ceiling on is 10-year yield target from 0.25% to 1%. It will be forced to shift its yield curve policy to compete with rising interest rates in the west.
ILSUSDILS trades down -0.32% intraday, falling to just below the 3.2000 level at time of writing. The pair reached 6-month highs during yesterday’s session, briefly trading above 3.2650.
Israel’s Q4 GDP figures are released today at 12pm CET. The TA-35 is rising for the third successive day up 0.8% in early trading.
Data & EventsUK – Jan CPI
Israel – Q4 GDP
US – Jan Industrial production
US – FOMC minutes from Jan meeting
NATO defense ministers meet
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. |