Pound reverses post-budget losses, Euro returns above parity, Biden’s approval dips ahead of midterms.
-
FX Rates
October 26, 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 1.1568 GBP/EUR 1.1533 EUR/USD 1.0031 USD/CAD 1.3545 EUR/CHF 0.9914 EUR/SEK 10.9364 EUR/NOK 10.3536 EUR/DKK 7.4383 USD/ILS 3.5179 AUD/USD 0.6472 NZD/USD 0.5805 USD/SGD 1.4087 USD/JPY 147.08 USD/CNH 7.2365 USD/INR 82.7300 EUR/ILS 3.5286 GBP/ILS 4.0695 USD/ZAR 18.0519
-
GBP
The pound has reversed almost all its post-budget losses. Sterling gained after the conservative leadership process ended efficiently with Rishi Sunak appointed on Monday. With the new cabinet being formed under Sunak, the political discount to GBP might be fading. Despite this the UK economy still faces several headwinds such as a looming recession and growing current account deficit. Sunak is considering a delay to next week’s planned fiscal statements.
PMIs released on Monday highlighted those recessions in the Manufacturing and Services sectors deepened through October, with activity in both industries falling to a 21-month low.
EURThe European Central Bank will likely announce an interest rate increase of 75-bps after its meeting on Thursday. The governing council is also expected to unveil a reintroduction of its liquidity tiering system. It will also discuss quantitative tightening; however the timing is unlikely to be this year.
USDSome estimates see US home prices falling roughly 15% to restore the housing market to equilibrium. Rising mortgage costs and a slowing construction industry has weighed on real estate markets.
US consumer confidence fell 5.3 points in October to 102.5, undershooting forecasts. Signs of softening demand highlight the vulnerability of the current economic expansion. Real consumer spending may have decelerated last quarter to a sluggish pace of 1.0%.
Joe Biden’s approval has dipped to 39% ahead of the US midterms recent polling shows.
ASIA/PACIFICAustralia’s Budget Update revealed that the government has been fiscally discipline. Revenue boosts from surging energy prices have been directed at fiscal repair rather than new spending.
Japan’s services PPI rose 2.1% YoY in September in line with forecasts, meanwhile South Korean manufacturers’ confidence worsened yet again.
ILSUSDILS trades 10-bps lower bolstered somewhat by shekel weakness as the dollar globally trades down almost 0.60%.
Data & EventsFrance Oct. Consumer Confidence
Eurozone M3 Money Supply
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 | |
© 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. |