Sterling trades lower as new forecasts suggest the UK will be the worst performing G7 economy this year. Emmanuel Macron and Marine Le Pen go head-to-head in TV debate tonight ahead of Sundays final election round.
-
FX Rates
April 20, 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 1.3018 GBP/EUR 1.2031 EUR/USD 1.0820 USD/CAD 1.2571 EUR/CHF 1.0271 EUR/SEK 10.2595 EUR/NOK 9.5057 EUR/DKK 7.4399 USD/ILS 3.2329 AUD/USD 0.7422 NZD/USD 0.6777 USD/SGD 1.3666 USD/JPY 128.65 USD/CNH 6.4387 USD/INR 76.4550 EUR/ILS 3.4988 GBP/ILS 4.2067 USD/ZAR 15.0583
-
GBP
The pound declined yesterday, falling behind its G10 peers as Boris Johnson’s ‘partygate’ scandal and economic concerns became the key focus for traders. According to new IMF forecasts, the UK will be the worst performing G7 economy over the next year, as tax increases and the cost-of-living crisis are expected to slow activity.
Johnson repeatedly apologized to Parliament last night, over his involvement in parties during the Covid lockdown. Parliament will decide on whether the Commons committee should investigate whether the PM misled parliament, which is a resigning offence under government rules in a vote on Thursday.
EUREmmanuel Macron leads Le Pen 55%-45% according to this morning’s voting intentions poll, ahead of tonight’s face-to-face TV debate and Sunday’s final round of presidential elections. The Euro has recovered slightly this morning after losing 0.35% yesterday, EURUSD trades just above the 1.0800 level at time of writing. European stocks gained, with the Stoxx 50 up 0.4%.
USDUS index futures declined, and the dollar slipped as traders digest 10-year real yields turning positive for the first time since March 2020. Nasdaq and S&P contracts fell after the biggest monthly gain on Tuesday, as results from Netflix dampened the earnings-season outlook. Netflix declined 25% in after-hours trading. The DXY is little changed this morning after losing 0.4% during the Asian session.
ASIA/PACIFICScientists have raised concerns over the efficacy of China’s homegrown Covid vaccines in tackling the Omicron variant. The country is facing the biggest surge in cases since the start of the pandemic, whilst only 57% of over 60s have received the booster jab.
Chinese stocks declined as the PBOC held lending rates, disappointing the market which anticipated a cut to support current lockdown measures. Oil rebounded as industrial activity in China picked up.
ILSThe shekel is little changed against the Dollar, trading around 3.2350 at time of writing.
Data & EventsEU - Balance of Trade
Industrial Production
US - MBA Mortgage Applications
Existing Home Sales
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. |