July 29, 2022
Rates 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.
GBP/USD 1.2197 GBP/EUR 1.1921 EUR/USD 1.0232 USD/CAD 1.2800 EUR/CHF 0.9745 EUR/SEK 10.3915 EUR/NOK 9.9096 EUR/DKK 7.4435 USD/ILS 3.3975 AUD/USD 0.7016 NZD/USD 0.6310 USD/SGD 1.3781 USD/JPY 132.93 USD/CNH 6.7333 USD/INR 79..23 EUR/ILS 3.4728 GBP/ILS 4.1375 USD/ZAR 16.4255
Liz Truss has rejected suggestions of a windfall tax on energy companies’ profits, despite British Gas owner Centrica’s announcement of huge earnings and calls for increased support for UK households struggling with rising fuel bills. Sunak conceded he is the underdog in the race for PM – he admitted his pledge not to cut personal taxes until inflation is under control was not universally popular, but believes it’s the honest thing to do.
Cable trades up 0.56% from Thursday’s open, up 2.4% since the start of the week. GBPEUR trades up 1.86% this week. The FTSE trades up 0.51% as we print.EUR
Economic expansion in France and Spain beat expectations, putting them on a firmer footing as surging inflation and the risk of a cutoff of Russian energy threaten to put Europe into a recession. French output rose by 0.5% in the three months through June whilst in Spain GDP jumped by 1.1%. In Spain, CPI jumped 10.8%, more than expected. French CPI growth was also ahead of forecasts at 6.8%.
EURUSD dipped to 1.0116 midday yesterday before reversing losses to trade up on the day, sitting in the 1.0241 region as we print up 0.38% this week. European equities open in the green with the Euro Stoxx, CAC and DAX gaining 1.14%, 1.72% and 0.82% respectively as we print.USD
The US economy shrinks for second consecutive quarter - GDP shrank 0.9% YoY, its second quarter of contraction. This increases the concerns of recession, as one of the common criteria for a technical recession, which complicates the Federal Reserve’s effort to stamp out soaring inflation with aggressive interest rate rises. Janet Yellen however shrugged off recession talk, saying a true recession is a broad-based weakening of the economy.
The US stock market hit a seven-week high Thursday, with the Dow Jones, S&P and NASDAQ gaining 1.03%, 1.21% and 1.08% respectively. The USD retreated with the DXY trading down 1.32% off Thursday’s highs.ASIA/PACIFICConsumer price growth in Tokyo accelerated more than expected in July - The headline CPI rose 2.5%. Asian stocks declined with the Nikkei, Hang Seng and CSI dipping 0.05%, 2.51% and 1.32% respectively.ILSUSDILS retreated further yesterday, trading down 1.36% this week to sit in the 3.3945 region as we print.Data & Events
Germany - July unemployment, 2Q GDP
Italy - 2Q GDP
UK - July mortgage approvals
Portugal - 2Q GDP, July CPI
Euro-Area - July CPI, 2Q GDP
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.
© 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.