July 27, 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 1.2050 GBP/EUR 1.1886 EUR/USD 1.0137 USD/CAD 1.2861 EUR/CHF 0.9754 EUR/SEK 10.4364 EUR/NOK 9.9866 EUR/DKK 7.4435 USD/ILS 3.4357 AUD/USD 0.6934 NZD/USD 0.6227 USD/SGD 1.3883 USD/JPY 136.96 USD/CNH 6.7610 USD/INR 79.8850 EUR/ILS 3.4835 GBP/ILS 4.1374 USD/ZAR 16.8541
New reports from the IMF show that Britain will have the slowest growth among the G7 next year. Forecasts have downgraded growth outlooks for 2023, dropping to the bottom of the pack with just 0.5% over the year.
Growth concerns will add ongoing fuel to the economic debate between Liz Truss and Rishi Sunak. Bloomberg Economics cites that Liz Truss’s tax cuts would add 0.6% to 2023 GDP, however, also add 0.4% to inflation and subsequently an additional 50bps to interest rates.
The pound trades 0.2% higher against the Dollar this morning, whilst the FTSE has opened in the green, up 0.35%.EUR
The Euro fell sharply yesterday following Russia’s reveal that they would cut gas supply from the Nord Stream pipeline to 20%. Dutchm TTF near-term gas prices rose 17%, whilst European natural gas TTF contracts surged to a fresh all-time high. The Euro hit the highest levels since early May against the pound, whilst EURUSD dropped 1.3% intraday.USD
The Dollar edged lower during the Asian session ahead of tonight’s Federal Reserve interest rate decision. The Fed are expected to raise rates by 75bps for a second consecutive meeting. Investors will be closely monitoring the statement that follows to assess whether the majority of the heavy lifting to cool inflation has been seen already.
Stocks rallied following strong earnings from Microsoft and Alphabet. The Nasdaq gained 1.5% and S&P 500 futures added 1%. US Consumer Confidence dropped to the lowest level since February 2021, amid rising inflation.ASIA/PACIFIC
Australian bonds rallied after Q2 inflation printed below forecasts, dampening bets for an aggressive rate hike next week by the RBA. Chinas Borrowing costs have fallen below 1%, as the liquidity provided by the Peoples Bank of China’s fails to stimulate demand.ILSUSDILS is trading 0.2% lower this morning around the 3.4350 level at time of writing.Data & EventsUS - Federal Reserve Interest Rate Decision
Durable Goods Orders
MBA Mortgage Applications
Germany/France - Consumer Confidence
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