Biden meets Powell to discuss inflation; Croatia could become Euro-area’s 20th member; No-confidence motions mount against PM.
June 1, 2022
GBP/USD 1.2604 GBP/EUR 1.1752 EUR/USD 1.0723 USD/CAD 1.2649 EUR/CHF 1.0294 EUR/SEK 10.4992 EUR/NOK 10.0437 EUR/DKK 7.4398 USD/ILS 3.3271 AUD/USD 0.7187 NZD/USD 0.6508 USD/SGD 1.3722 USD/JPY 129.36 USD/CNH 6.6973 USD/INR 77.5463 EUR/ILS 3.5677 GBP/ILS 4.1931 USD/ZAR 15.5569
The cost-of-living crisis and increasing mortgage rates may have moderated house prices in the UK. Consensus sees house prices rising 10.5% YoY slowing from April’s 12.1%. Mortgage approvals remain above the pre-pandemic average.
Speculation has begun over the number of no-confidence motions tabled against Boris Johnson. The process within the conservative party is anonymous, with wargaming beginning on the outcome of a possible no-confidence vote.EUR
Croatia will discover whether their economy meets the criteria to become the euro-area’s 20th member. Progress will be assessed in reports due today from the ECB and the EU’s executive arm.
Germany will prioritise its air force as part of a €100 billion defence package. €41 billion is set to be directed at airpower.
EURUSD trades lower by 0.14% as we print.USD
Biden met Powell yesterday, with the president using the meeting to stress the Fed’s independence and their mandate to tame inflation. The white house is assessing measures to mitigate inflation including easing tariffs. Janet Yellen praised the Fed for taking the right steps and admitted that she underestimated inflation risks last year.
The dollar trades higher by 0.16% as we print. US Markets slipped yesterday; with the NASDAQ closing down -0.41%.ASIA/PACIFIC
Australia’s three-year bond yield rose following data showing that the economy expanded faster than forecasted in the first quarter. These figures could bolster the case of the RBA to raise rates further this year.
The Japanese yen has weakened to a 2-week low, slipping past 129 per dollar today. This comes following months of weakening in the Yen as policymakers fail to act to support the depreciating currency.ILS
USDILS trades 0.2% higher intraday. Yesterday saw the pair fall -0.5%.Data & Events
Euro-area Manufacturing PMI
UK Manufacturing PMI
UK House Price Index
US Manufacturing PMI
US ISM Manufacturing
Fed Beige Book
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.
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.
© 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.