Sterling continues to climb as GDP reaches pre-pandemic levels for the first time. Global stocks decline as Fed officials suggest rate rises may be needed as early as March.
-
FX Rates
January 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 1.3735 GBP/EUR 1.1979 EUR/USD 1.1465 USD/CAD 1.2481 EUR/CHF 1.0432 EUR/SEK 10.2494 EUR/NOK 9.9477 EUR/DKK 7.4409 USD/ILS 3.1096 AUD/USD 0.7275 NZD/USD 0.6856 USD/SGD 1.3453 USD/JPY 113.84 USD/CNH 6.3525 USD/INR 74.18 EUR/ILS 3.5640 GBP/ILS 4.2700 USD/ZAR 15.3263
-
GBP
The pound has continued to climb, up 0.23% against the Dollar this morning, set to end the week on its longest winning streak since November. The rally was supported by stronger than expected GDP, with the UK economy surpassing its pre-pandemic size in November for the first time, with a reading of 0.9%. Despite the rise, economists expect output to lose momentum from December as Omicron cases surged.
EUREURUSD is trading 1.1% higher on the week, with the Euro benefitting from broad Dollar weakness. The pair reached the highest level since November yesterday, around 1.1475.
France has lifted its restrictions on vaccinated travelers from the UK, after the ban failed to limit the spread of Omicron across the country. Travelers coming from the UK will still be required to show a negative Covid test result within 24 hours of departure, however will not need to quarantine.
USDThe Dollar was little changed yesterday, after investors reacted to producer inflation data from the US. PPI ticked lower for December to 9.7%. Initial jobless claims rose to the highest level in 8-weeks for the first week of January as Omicron cases surge. The Nasdaq fell to its lowest level since October, declining 2.5%, after a number of Federal Reserve members suggested that they will look to raise rates as early as March to bring inflationary pressures under control. The S&P 500 also fell 1.4%.
ASIA/PACIFICUSDCNY is trading down 0.3%, to the lowest level since May 2018. Comments from Fed officials yesterday spurred the decline, with Asian shares also following suit. The Nikkei and Topix are both down 1.3% during the Asian session, whilst the Hang Seng lost 0.2%.
ILSUSDILS is little changed on the week, trading around the 3.1100 level.
Data & EventsUK – GDP
Construction Output
Industrial and Manufacturing Production
Germany – GDP
US – Retail Sales
Industrial Production
Michigan Consumer Sentiment
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 | |
© 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. |