Omicron nears peak in the US, Geopolitical tensions in Europe flare as the west looks to Biden for leadership.
January 24, 2022
GBP/USD 1.3534 GBP/EUR 1.1951 EUR/USD 1.1326 USD/CAD 1.2591 EUR/CHF 1.0328 EUR/SEK 10.4213 EUR/NOK 10.1299 EUR/DKK 7.4434 USD/ILS 3.1556 AUD/USD 0.7155 NZD/USD 0.6705 USD/SGD 1.3447 USD/JPY 113.54 USD/CNH 6.3334 USD/INR 74.6600 EUR/ILS 3.5752 GBP/ILS 4.2687 USD/ZAR 15.1790
Political uncertainty continues to add downward pressure to the Pound, as Westminster looks forward to Sue Gray’s ‘Partygate’ Report and whether the incumbent government can survive the fallout. Sterling is little changed this morning after losing 0.4% and 0.6% against the Dollar and Euro on Friday.
Brexit woes continue to rear their head with two major Welsh ports reporting trade volume’s down 30% in 2021 YoY. Brexit risks continue to add uncertainty as investors await today’s PMI data.EUR
The Euro continues to trade just above yearly lows around 1.1320 against the US Dollar, as investors eye todays eurozone PMI releases. Inflationary pressures, the inherent risk of conflict in Ukraine and the concurrent threat to energy supplies continue to put further pressure upon European leaders.
Today focus will gather around the German Services PMI release and how this compares with forecasts.USD
The DXY continues its upward climb, up 0.11% in the intraday range. Labour shortages and soaring wages threaten to play a key role in elevated prices, with a NABE survey reporting that 77% expect high wage costs over the next three months.
Tensions with Russia flare, as US diplomatic families leave Ukraine. Meanwhile the White House is still considering whether to maintain its retrained stance or begin to look at deployments.ASIA/PACIFICThe Hang Seng is down 1.3% at time of writing. The Yen climbed to session highs, up 0.25% on last weeks close, before falling to its current level at 113.75. Progress appears to be made in Evergrande, with prices up 8.15% as restructuring progresses. A few notable data releases today across Asia, with Japan’s PMI, Singapore’s CPI and South Korea’s GDP figures.ILSUSDILS trades up 0.31% at time of writing, reaching a monthly high at 3.1610. The pair has gained 2.33% over the last month.Data & EventsUK - Markit Composite/Services/Manufacturing PMI
Euro Area - Markit Composite/Services/Manufacturing PMI
US - Markit Composite/Services/Manufacturing PMI
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.
© 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.