Conservatives suffer significant defeat in by-election; Swap markets see Fed hikes peaking in March; EU grants Ukraine candidate status.
June 24, 2022
GBP/USD 1.2270 GBP/EUR 1.1658 EUR/USD 1.0525 USD/CAD 1.2979 EUR/CHF 1.0115 EUR/SEK 10.6806 EUR/NOK 10.4792 EUR/DKK 7.4387 USD/ILS 3.4436 AUD/USD 0.6904 NZD/USD 0.6297 USD/SGD 1.3883 USD/JPY 134.53 USD/CNH 6.6940 USD/INR 78.3225 EUR/ILS 3.6242 GBP/ILS 4.2252 USD/ZAR 15.9328
UK consumer confidence dipped in June to a record low amid surging prices. GfKs sentiment survey dropped to -41, the lowest reading in 48 years. Retail sales beat expectations at falling 0.5%, down from a 1.4% gain the previous month.
The conservatives lost two parliamentary seats in by-elections yesterday, further adding pressure to the PM to resign. Both the Lib Dems and Labour gained seats in the Tiverton and Honiton and Wakefield seats respectively.EUR
The EU granted Ukraine candidate status in a historic first step to membership.
Germany’s Ifo survey could show a second month of outlook improvement with the expectations gauge seen rising to 87.4.
EURUSD trades slightly higher, the Euro Stoxx opens higher 0.5%USD
Swap markets are signaling that the market now sees the Fed hike cycle peaking in March. Current expectations are a 75-bps increase to be followed by a 50-bps increment, as the Fed aims to regain control of the inflation narrative.
The senate voted 65-33 to approve bipartisan gun-safety legislation, that has been described as the biggest breakthrough in decades.ASIA/PACIFIC
Japan’s key inflation rate was unchanged at 2.1% in May staying above the BOJ’s 2% target.
The PBOC injected $7.5 billion dollars in its biggest cash infusion since March 31, providing stimulus for an economy which in recent months has been stricken with omicron outbreaks.ILS
USDILS trades 0.2% lower, so far in 2022 USDILS has gained 10.7% notably driven by periods of prolonged dollar strength globally.Data & Events
Germany Ifo Survey
Italy Consumer/Manufacturing Confidence
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.