Talks continue between Russia and Ukraine with Zelensky reporting room for compromise. The Fed meets this evening, with market's expecting a 25bp rate hike.
March 16, 2022
GBP/USD 1.3060 GBP/EUR 1.1877 EUR/USD 1.0996 USD/CAD 1.2719 EUR/CHF 1.03366 EUR/SEK 10.471 EUR/NOK 9.8168 EUR/DKK 7.4403 USD/ILS 3.2604 AUD/USD 0.7230 NZD/USD 0.6787 USD/SGD 1.3610 USD/JPY 118.31 USD/CNH 6.3623 USD/INR 76.26 EUR/ILS 3.5857 GBP/ILS 4.2578 USD/ZAR 15.0712
GBPCable recovered slightly over Tuesday's session to reach highs of 1.3089 before retreating to trade in the 1.3060 region as we print, up 0.19% this week. Market's will be paying close attention to the Federal Reserve release later this evening along with tomorrow's BOE decision.
Both central banks are expected to raise interest rates by 25 basis points, however investors will be focusing on the risk that the BOE could surprise with a bigger hike as well as on the Fed’s dot plot and quantitative easing plans.
Then FTSE trades up 1.41% as we print.EURECB official Guindos stated that normalization of monetary policy doesn't mean that they will rise rates immediately.
EURUSD was mixed over Tuesday's trading reaching highs of 1.1020 early London before retreating towards the close. EURUSD sits just below 1.10 as we print up 0.74% this week.
European stocks rally with the Euro Stoxx, CAC and DAX gaining 2.7%, 2.46% and 2.4% as we print.USDThe first Fed rate hike since 2018 is on the horizon - markets are expecting a 25bp hike today after Powell downplayed to congress the likelihood of a 50bp move. Following the 6pm GMT release, investors will be playing close attention to the dot plot, to see whether officials agree with what the market is currently pricing - seven hikes this year.
Pfizer and BioNTech sought emergency approval for second booster shots for people 65 and above.ASIA/PACIFICAsian equities rallied with the Hang Seng gaining as much as 9.08%, whilst the Nikkei and CSI gained 1.64% and 4.32% respectively.
WTI remained below $100.
Yuan got a boost after Saudi reported they may consider Yuan payments for oil sold in China.
New Zealand will remove its ban for foreign travelers, with the first arrivals allowed from April 12th.ILSILS gained some momentum vs the USD yesterday, reversing most of Monday's losses to sit in the 3.2616 region as we print, flat on the start of the week.Data & EventsSpain - House transactions
Italy - CPI
Russia - CPI
US - FOMC rate decisionRussia/UkraineUkraine and Russia continue talks today, as a key advisor to PM Zelensky called the negotiations difficult however said there was room to compromise. Putin said Ukraine isn't being "serious" about resolving the war.
Leaders from Poland, Czech Republic and Slovenia visited Kyiv for talks with Zelenzky, whilst Biden is expect to offer $1billion of military aid for Ukraine.
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.
© 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.