FOMC meeting shows scepticism over disinflation, UK government to assist energy-intensive companies to maintain competitiveness, shekel volatility highest since 2020.
-
FX Rates
February 23, 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 1.2046 GBP/EUR 1.1352 EUR/USD 1.0612 USD/CAD 1.3525 EUR/CHF 0.9886 EUR/SEK 11.0378 EUR/NOK 10.9726 EUR/DKK 7.4454 USD/ILS 3.6074 AUD/USD 0.6830 NZD/USD 0.6239 USD/SGD 1.3414 USD/JPY 134.84 USD/CNH 6.8979 USD/INR 82.7375 EUR/ILS 3.8280 GBP/ILS 4.3455 USD/ZAR 18.3100
-
GBP
The UK government has vowed to assist energy-intensive companies with higher energy prices in a bid to help them maintain competitiveness in Europe. This comes as British Steel announces 260 job cuts to confront soaring costs.
UK opposition leader Kier Starmer speaks today, outlining his plan if he wins the general election next year - he is expected to outline 5 bold missions including a measurable goal for economic growth and proposals to assist the NHS crisis.
Yesterday's trading saw GBPUSD lose some of Tuesday's gains, sitting in the 1.2050 region as we print after Fed minutes confirmed higher rates for a longer time to tame inflation. Investors will now focus on the post-Brexit trade agreement with Northern Ireland for some direction in the pair. Rising bets for additional rate hikes for the BOE also act as a tailwind for GBP providing some support.
The FTSE dipped 0.25% since this morning’s open
EURThe EU and US are close to an agreement that would allow EU companies to benefit from Biden’s green investment plan. The agreement focuses on the raw materials used in batteries, which could massively improve the prospect of Europe’s EV industry.
EURUSD trades 0.4% lower than this time yesterday, trading around the 1.06 handle. The Euro Stoxx 50 has opened higher this morning by 0.5%
USDThe Federal Reserve minutes casted a significantly dull outlook for equities, as the meeting revealed that policymakers continue to anticipate rates pushing higher, with further rate hikes through 2023. The surprise factor was that this was discussed three weeks ago, when inflationary figures hinted at disinflation. Since then, there have been several upside surprises showcasing how persistent price pressures are. The minutes also show that inflation continues to top recession risks, in the minds of the FOMC.
The dollar strengthened through yesterday by over 0.3%, meanwhile it was a mixed day for US equities as the NASDAQ and S&P500 finished 0.13% and -0.16% respectively.
ASIA/PACIFICSingapore’s CPI inflation rose in January, although significantly less than had been forecasted. Yet as these pressures mount Singapore’s monetary authority is expected to keep its policy tight at its April meeting, especially as the prices for imported food and fuel remain high.
Bank of Korea governor Chang-yong signalled that policy makes may continue to raise rates despite pausing at today’s meeting.
ILSIsrael’s foreign exchange market has been experiencing a period of uncharacteristic volatility as a political dispute of Netanyahu’s planned Judicial overhaul rages on. As of yesterday, ILS volatility was its greatest since the start of the pandemic. USDILS parred some losses as Netanyahu spoke out yesterday in defence of the Bank of Israel. USDILS trades 2.6% lower than yesterday’s highs of 3.69
Data & EventsEuro-Area Jan. CPI
US 4Q GDP
G-20 Finance ministers meet in India
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. |