US concerned of Russian Escalation; EU holds off on curbing Russian imports; EU PMI’s beat expectations.
-
FX Rates
March 25, 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 1.3176 GBP/EUR 1.1968 EUR/USD 1.1009 USD/CAD 1.2551 EUR/CHF 1.0204 EUR/SEK 10.3328 EUR/NOK 9.5568 EUR/DKK 7.4404 USD/ILS 3.2230 AUD/USD 0.7508 NZD/USD 0.6962 USD/SGD 1.3565 USD/JPY 121.65 USD/CNH 6.3746 USD/INR 76.1938 EUR/ILS 3.5481 GBP/ILS 4.2465 USD/ZAR 14.5441
-
GBP
UK consumer confidence plummeted for a fourth month to its lowest since Nov 2020, on concerns of the rising cost of living. The UK’s service PMI greatly exceeded expectations by 3 points, meanwhile UK manufacturing slipped further by 1.5 points.
Despite political manoeuvring that the spring summit was a tax cut, the Total tax burden will increase to its highest since the 1940s.
GBPUSD trades down marginally by -0.05%, and EURGBP trades higher by 0.25%.
EURThe EU refrained from taking action to cut Russian crude imports. Biden is also expected to announce a deal enabling Europe to replace Russian gas imports.
The EU has approved the Digital Markets Act, implementing changes to how Big Tech operates. It introduces measures to curtail their power with significant fines and banning from acquisitions.
EU PMIs slipped in February, however beat market expectations signalling that European economies are weathering Ukraine impacts better than expected.
USDUS officials are concerned that the struggling Russian offensive may provoke an escalation from the Kremlin, as Biden calls for Russia’s removal from the G-20.
The dollar’s share of global reserve currencies has been in steady decline over the past 20-years. The IMF has found that managers are steadily moving out of dollars, 25% of flow is towards the renminbi and 75% into currencies of smaller countries.
The DXY is down -0.16% as we print.
ASIA/PACIFICThe US is increasingly concerned over China exporting tech hardware to Russia which would significantly mitigate the impact of western sanctions. China struggled to carry momentum into March as Covid and slumping property and automobile markets weighed in on growth, Bloomberg’s aggregate indicator index was unchanged from last month.
Next week, Japan is set to outline a stimulus package in response to higher oil and grain prices.
ILSUSDILS trades up 0.16% at 3.223, reaching earlier highs of 3.227 in Asian session.
Data & EventsUK – Feb Retail sales
NATO – Meeting continues in Brussels
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. |