The US Dollar finds some support during the Asian session as Fed officials comment the central bank still has "a way to go" with rate hikes. Investor focus this week shifts to the UK Autumn Budget on Thursday.
-
FX Rates
November 14, 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 1.1786 GBP/EUR 1.1421 EUR/USD 1.0320 USD/CAD 1.3288 EUR/CHF 0.9757 EUR/SEK 10.7336 EUR/NOK 10.2926 EUR/DKK 7.4384 USD/ILS 3.4204 AUD/USD 0.6688 NZD/USD 0.6090 USD/SGD 1.3740 USD/JPY 140.11 USD/CNH 7.0448 USD/INR 81.2150 EUR/ILS 3.5309 GBP/ILS 4.0306 USD/ZAR 17.2833
-
GBP
Focus this week will turn to the much anticipated delivery of the Autumn Budget on Thursday and the potential impact on the UK economy. The office for Budget Responsibility has warned Jeremy Hunt that UK public borrowing is likely to be around £70bn larger than expected, with estimates that it could reach £100bn in 2026-27. The Chancellor is expected to announce a big package of spending cuts and tax increases in a bid to tackle forecasts.
Sterling gained 4% against the greenback last week before declining 0.35% this morning, whilst the FTSE has opened the week 0.65% higher as risk sentiment continues to improve following Thursday’s US CPI data.
EURThe Euro was another currency to gain from a weaker dollar last week, with the pair trading over 4% higher to reach 3 month highs of 1.0363. Traders will focus on today’s industrial production numbers and statements from ECB members.
Natural gas prices rallied as temperatures are expected to cool in the coming weeks. The Stoxx Europe 600 trades 0.3% higher this morning led by an increase in mining stocks.
USDLast week closed with a notable rise in risk appetite, with the Dollar index losing 4.39% over the period. Stronger than expected inflation was the catalyst for the move, with increasing government bond purchases and a drop in treasury yields the result. The Dollar climbed briefly during the Asian session, following comments from Fed Governor Christopher Waller that the central bank was not intending to soften its fight against inflation.
US futures declined this morning, with the S&P and Nasdaq down 0.2% and 0.4% as investors remain defensive over inflation .
ASIA/PACIFICThe Yen decline 0.8% during the Asian session as investors digested comments from Fed Governor Waller. Despite the decline, the Yen still trades up on the Dollar with last week saw seeing the biggest gain since 2008, surging around 6% following a change in risk sentiment.China have introduced a new plan to rescue its real estate sector, with the package intending to increase the probability of a soft landing to 85% from 70%. The plan aims to add funding for developers whilst adding more flexibility for mortgage extensions. This along with relaxed Covid restrictions has boosted sentiment, with the offshore Yuan trading 1% higher against the Dollar and the Hang Seng up as much as 4.6% in this morning's session.
ILSAfter reaching highs of 3.5550 last week, USDILS has dropped 3.4% to trade around 3.4250 at time of writing.
Israel's president formally asked Prime Minister Benjamin Netanyahu to form a government yesterday, with what is expected to be Israel's most right-wing coalition ever.Data & EventsEuro Area - Industrial Production
ECB members speak
US - Fed members speak
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. |