UK's trade performance falls to worst ever on record highlighting the economic effects of Brexit. Shekel trades at weakest level in 2 years.
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FX Rates
July 1, 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 1.2097 GBP/EUR 1.1591 EUR/USD 1.0436 USD/CAD 1.2928 EUR/CHF 0.99857 EUR/SEK 10.7527 EUR/NOK 10.3766 EUR/DKK 7.4381 USD/ILS 3.5201 AUD/USD 0.6807 NZD/USD 0.6177 USD/SGD 1.3936 USD/JPY 135 USD/CNH 6.7161 USD/INR 79.105 EUR/ILS 3.6754 GBP/ILS 4.2595 USD/ZAR 16.4053
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GBP
Tensions are growing between Downing Street and UK regulators over Boris Johnson’s flagship post-Brexit reform of the insurance sector, which aims to unleash an “investment big bang” in British infrastructure. Johnson has suggested that insurance companies will put billions of pounds into infrastructure, including green energy schemes, after the overhaul.
The UK’s current account deficit was calculated at 8.3% of GDP in the first quarter of 2022, a deterioration from an average of 2.6% across 2021 and the worst level since records began, placing more pressure on the pound, and further highlighting the economic impact of Brexit.
GBPUSD trades down 1.63% since the start of the week, sitting in the 1.21 region as we print.EURECB's Holzmann said he would have preferred earlier rate hikes out of the ECB. He further stated that it may take “some time” to get back to the ECB’s inflation target, and that they “won’t reach 2% tomorrow or the day after tomorrow, but in a foreseeable timespan.” When commenting on recession fears, Holzmann noted that though unlikely for now, it would be temporary and economies are well prepared.
EURUSD whipsawed yesterday hitting lows of 1.0383 and highs of 1.0484, however trades down 0.92% this week.USDUS 10-year treasury yields broke below 3%, in a fourth day of declines and looked set for their biggest weekly drop in seven weeks, as concerns continued to mount that Federal Reserve rate hikes will lead to a recession. The latest lag comes after Powell stated Wednesday that the risk of harm to the economy from higher rates was less important than restoring price stability.
The dollar dipped off highs of 105.50, however still trades up 1% since the start of the week.ASIA/PACIFICAsian equities declined due to concerns about an economic downturn amid tighter monetary policy. The Nikkei, Hang Seng and CSI fell 1.73%, 0.62%, and 0.41% respectively.ILSILS continued loosing strength throughout the week, with the shekel falling 3.84% against the USD this week, to the weakest level since May 2020.
Israeli lawmakers votes to dissolve parliament and hold new elections on Nov. 1.Data & EventsFrance - June PMI
Germany - June PMI
Euro-area - June PMI, CPI
UK - consumer credit, mortgage approvals, money supply
UK - June PMI
Italy - CPI
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