The Dollar trades on the back foot over bets of a less aggressive rate hike trajectory.
August 1, 2022
Rates 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.
GBP/USD 1.2218 GBP/EUR 1.1915 EUR/USD 1.0254 USD/CAD 1.2784 EUR/CHF 0.9743 EUR/SEK 10.3989 EUR/NOK 9.9179 EUR/DKK 7.4445 USD/ILS 3.3808 AUD/USD 0.7030 NZD/USD 0.6325 USD/SGD 1.3774 USD/JPY 132.31 USD/CNH 6.7621 USD/INR 79.0300 EUR/ILS 3.4662 GBP/ILS 4.1279 USD/ZAR 16.4936
GBPUSD trades close to a monthly high around 1.2200, as traders await this weeks Bank of England rate decision, where the central Bank are widely expected to hike rates by 50bps, the fastest pace since 1995.
Postal votes will be sent to 175,000 conservative party members today to elect Rishi Sunak or Liz Truss for the next leader and PM. Consensus is that Liz Truss is currently ahead in the race, after winning support of a number of party heavyweights. The winner will not be announced until September 5th.EUR
German retail sales disappointed this morning, falling 8.8% YoY against expectations of -8%, the biggest decline since 1994. The monthly figure for June also unexpectedly fell, with higher food prices in particular restricting consumers purchasing power.
GDP figures on Friday generally beat expectations. German growth declined as they face ongoing energy price pressure, however Italian, French and Spanish figures grew sizably, with tourism over the summer holidays the main contributor. Eurozone GDP rose 0.7% QoQ.USD
The dollar continues to trade on the back foot over bets of a less aggressive rate hike trajectory from the Fed. The DXY is down 0.2% intraday, after losing 0.8% last week.
Federal Reserve member Neel Kashkari said that the central bank are committed to reaching their inflation goal of 2% in the long term. Global stocks rallied with the S&P and Nasdaq leading the way, gaining 1.4% and 1.88% respectively.ASIA/PACIFIC
The yen is on its longest winning streak in 6 months, gaining 0.9% against the Dollar as reduced expectations for Fed hikes shifts risk focus.
Oil prices fell following a surprise contraction in Chinas manufacturing PMI, adding concerns to a global slowdown. Asian stocks climbed, led the way by the Nikkei gaining 0.7% and Australia’s ASX 200 up 0.7%.ILSAmid broad Dollar weakness, USDILS lost 2% last week to trade just above the 3.3800 level at time of writing.
The shekel gained 5.1% against a basket of the worlds major currencies last month, outperforming all of them against the Dollar. EURILS trades at the lowest level since October 2000.Data & EventsUS - Manufacturing PMI
UK/Europe - Manufacturing PMI
Europe - Unemployment Rate
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.