.png){kind=logo}
Inflation to reach record highs in US and EU; US and UK ban Russian energy imports; Sanction’s “crater” Russia’s economy and banking system.
-
FX Rates
March 9, 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 1.3139 GBP/EUR 1.1999 EUR/USD 1.0950 USD/CAD 1.2838 EUR/CHF 1.0167 EUR/SEK 10.7797 EUR/NOK 9.7873 EUR/DKK 7.4442 USD/ILS 3.2910 AUD/USD 0.7316 NZD/USD 0.6837 USD/SGD 1.3630 USD/JPY 115.84 USD/CNH 6.3212 USD/INR 76.7938 EUR/ILS 3.6032 GBP/ILS 4.3234 USD/ZAR 15.1728
-
GBP
Zelensky gave a rousing speech to Westminster yesterday, taking inspiration from the wartime speeches of Winston Churchill.
UK household income will fall by roughly £1,000 this year due to inflation. Drivers are being asked to limit speed to cut back on fuel spending, with expectations on road milage to fall by 30% in 2022.
GBPUSD trades at 1.314, up 0.3% as we print.
EUREurope has begun to rapidly untether itself from Russian oil and gas links. This will cause euro-zone economies to look elsewhere, moving its $1 billion import market to other producers, likely to force crude prices higher. This will be combined with a renewed push to develop renewable production.
Since Feb. 9 Euro Stoxx dividend futures have fallen by 23%, underperforming against the index itself.
EURUSD trades at 1.095, up 0.4% intraday.
USDUS inflation may hit 10% before concluding the year at 7.5%. If 2-10 Year and 5-30 Year treasury spreads reach sub-zero levels, a recession becomes increasingly likely.
The US has enforced an oil embargo to avoid financing the ‘Russian war machine’, in what has led the way for the UK and EU to follow in avoiding Russian imports where possible.
The Fed is strongly expected to raise its rates next week, although the impact of the Ukraine war has damaged chances of a 50-bp hike. Bond markets are signalling recession as yield curves flatten.
ASIA/PACIFICSevere flooding has hit Australia’s eastern coast with damage expected to value at $1.1 billion. Expectations of a 2022 RBA rate hike have grown and will be bolstered if April inflation data is above expected levels.
Many expect China to miss its GDP growth target, with a view that the economy will grow 4.5%. South Korea heads to the polls to elect a new president. Japan plans to increase spending to mitigate impacts of Ukraine war.
ILSUSDILS trades higher 0.27% intraday at 3.294. The pair held levels above 3.3 for three short periods yesterday reaching levels not seen since July 2021.Data & EventsIT – Industrial Production
EIA US crude inventory report
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.
Subscribe to receive the Daily FX Update in your inbox.
By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
| 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. |