FTSE outperforms against US and European equities; S&P500 Falls 3% in worst session since 2020; Bank of Israel FX intervention to remain negligible.
-
FX Rates
March 8, 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 1.3118 GBP/EUR 1.2020 EUR/USD 1.0914 USD/CAD 1.2824 EUR/CHF 1.0106 EUR/SEK 10.8273 EUR/NOK 9.8269 EUR/DKK 7.4431 USD/ILS 3.2875 AUD/USD 0.7280 NZD/USD 0.6820 USD/SGD 1.3640 USD/JPY 115.57 USD/CNH 6.3191 USD/INR 76.8638 EUR/ILS 3.5880 GBP/ILS 4.3126 USD/ZAR 15.2905
-
GBP
UK households could reportedly face the biggest fall in living standard in over 50 years, as the conflict in Ukraine raises inflation expectations. The resolution foundation has stated that the UK may see a recession in the second half of 2022, if prices, especially energy remain at current levels.
The FTSE100 has significantly outperformed against European equities and to a lesser extent US stocks. YTD the FTSE100 trades down -5.7%, compared to the STOXX down -18.2% and the NASDAQ down -17.9%. This is mainly down to fact that the FTSE100 is supported by a successful finance sector, and commodities surges have been rejuvenating the prospects of ailing energy giants.
The pound trades up against the dollar, whilst EURGBP trades down -0.15%
EURThe euro continues to face selling pressure as conflict continues to escalate in Ukraine, downside pressure is unlikely to relent, with the ECB expected to leave rates low, until the second half of 2022.
Risk sentiment and continental growth concerns cast doubt on the euro, which has performed poorly against both the dollar and pound in 2022.
As Brent crude soars above $120, and gas futures reach $225 per megawatt-hour, this is likely to stunt European industrial growth prices, and add to cost-push inflation.
USDThe House will vote today on bipartisan legislation on US import laws in response to the Russo-Ukrainian conflict, allowing tariffs to be raised on imports from Russia and Belarus. This could also be bolstered by $10 billion funding from capitol hill to response to the Ukraine crisis. Furthermore, an executive order is expected this week, to outline the White House’s policy on Crypto, calling on federal agencies to investigate potential regulatory intervention and involvement.
The DXY continues its strength, up almost 4% over the last month, bolstered by risk-off markets.
ASIA/PACIFICAustralia’s Scott Morrison has called for a revival in manufacturing, highlighting seven priority sectors, notably including semi-conductors.
Foreign investment holdings of Chinese bonds fell by $5.5 billion last month as bond markets were shook following the Ukraine conflict.
Earnings for Japanese workers climbed by 0.9% in January.
ILSUSDILS approaches 3.3, currently trading at 3.294, levels not seen since April 2021, as conflict pushes investors towards the safe-haven dollar.
The Bank of Israel’s intervention in foreign currency purchases are likely to remain negligible. This change in policy is due to revaluation that decreased reserves by $1.6 billion.
Data & EventsDE – Industrial Production
ES – Industrial production
EU – Q4 GDP
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 | |
© 2022 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. |