ECB expected to delay action, hawkish surprise possible but unlikely; Conservative Yoon Suk-yeol elected South Korean President; UAE to nudge OPEC allies to increase oil production.
March 10, 2022
GBP/USD 1.3165 GBP/EUR 1.1917 EUR/USD 1.1048 USD/CAD 1.2824 EUR/CHF 1.0239 EUR/SEK 10.7397 EUR/NOK 9.8893 EUR/DKK 7.4420 USD/ILS 3.2619 AUD/USD 0.7335 NZD/USD 0.6847 USD/SGD 1.3595 USD/JPY 115.98 USD/CNH 6.3285 USD/INR 76.2388 EUR/ILS 3.6029 GBP/ILS 4.2935 USD/ZAR 15.1120
UK starting salaries for permanent staff climbed at the second-fastest rate on record in Feb. Elsewhere, the invasion of Ukraine could take the hit to households from higher energy costs to £43 billion.
The FTSE has opened down -0.82%. following a day which saw most European markets in positive territory. The FTSE has proved less volatile throughout the ongoing Ukraine conflict.
GBPUSD trades down -0.2% and EURGBP trades up 0.1%.EUR
The ECB meets today, it is unlikely to act however a hawkish surprise is possible. Surveyed expectation is that QE will roll back in Q4, followed by a 0.25% hike in December.
Ukraine’s Foreign Minister has called for the EU to green light Ukrainian membership.
EURUSD trades down -0.3% intraday, and the DAX and STOXX have opened down -2%.USD
The U.S. House passed a long-delayed $1.5 trillion spending bill that will fund the government and provide financial aid to Ukraine. Meanwhile Feb. CPI is due today, surveyed to accelerate to 7.9% YoY, bolstering Fed Plans to hike next year.
The house also passed legislation barring US imports of Russian oil.
Yesterday, was a bolstering session for US equities, the NASDAQ and S&P500 closed up 3.6% and 2.6%. The DXY currently trades up 0.25%ASIA/PACIFIC
South Korea’s Yoon Suk-yeol was elected president. He has vowed to rebuild the US alliance and focus on the future, regarding relations with Japan.
Australia announced a $27.8 billion expansion of Australia’s military, citing threats in the Indo-pacific region as justification.
China’s new lending is expected to have eased in February due to the Lunar new year. Meanwhile, Hong Kong will not reopen to travel until COVID is under control, expectations are that borders will reopen in a few months.ILS
USDILS trades near 3.265, falling away from 3.3 levels seen on Tuesday.Data & Events
ECB – Meeting and Rates Decision
US – Feb CPI, Jobless Claims
US – Sell 30-year bonds.
IT – Jan PPI
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.