Powell’s speech set to signal Fed downshift, China’s Caixin PMIs slows amid covid disruption, Euro-Area headline inflation expected to moderate.
November 30, 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 1.2004 GBP/EUR 1.1571 EUR/USD 1.0374 USD/CAD 1.3531 EUR/CHF 0.9856 EUR/SEK 10.9198 EUR/NOK 10.2753 EUR/DKK 7.4366 USD/ILS 3.4343 AUD/USD 0.6731 NZD/USD 0.6245 USD/SGD 1.3673 USD/JPY 138.63 USD/CNH 7.1009 USD/INR 81.4250 EUR/ILS 3.5625 GBP/ILS 4.1223 USD/ZAR 16.9410
Growth in the UK has slowed sharply in 2022. That’s partly due to one-off factors such as extra bank holidays, However the main underlying cause has been the hit to living standards from high inflation. The latest GDP data point to a contraction of 0.2% in the third quarter of this year, with further decline next year.
The UK is set to relax rules that require banks to separate their retail services from investment banking activities as part of government efforts to deregulate the City of London. UK business confidence dropped in both the CBI and Lloyds survey, highlighting the worsening economic outlook.EUR
Euro-area headline inflation will be the last inflation check for the ECB ahead of the final meeting of 2022. The consensus is that CPI will moderate this month to 10.4% down from 10.6% last month. Both German and Spanish inflation decline more than expected yesterday.USD
The House of Representatives plans to bring forward legislation that will prevent a strike by freight rail workers. The strike could stress supply chains across the US.
Markets will keep their attention trained on Powell’s comments later on the economy and the labour market. He is widely expected to signal that the next Fed rate hike will be smaller 0.5% jump than last months 0.75% jump.ASIA/PACIFIC
China’s Caixin manufacturing PMI indicates further weakening of global demand. The gauge has dropped further into contractionary territory, down to 48.0 from 49.2. Fresh unrest over Beijing’s covid-zero policy occurred last night.ILS
Bank of Israel Governor Amir Yaron says that while interest rate hikes may be painful, especially to lower-income households, those who try to find “miracle solutions” could create risks undermining the business and legal environment.Data & Events
Jerome Powell speaks
US 3Q GDP
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.