UK Inflation jumps to a 30-year high, ECB expected to stand pat on rates.
-
FX Rates
April 14, 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 1.3135 GBP/EUR 1.2039 EUR/USD 1.0910 USD/CAD 1.2555 EUR/CHF 1.01951 EUR/SEK 10.3004 EUR/NOK 9.5421 EUR/DKK 7.4384 USD/ILS 3.2037 AUD/USD 0.7447 NZD/USD 0.6819 USD/SGD 1.3539 USD/JPY 125.35 USD/CNH 6.3798 USD/INR 76.175 EUR/ILS 3.4945 GBP/ILS 4.2076 USD/ZAR 14.6452
-
GBPUK Inflation jumps to a 30-year high, with YoY CPI printing at 7%, beating 6.75% expected - marking the sixth straight month that the reading has exceeded forecasts - as the worsening cost of living threatens to derail the recovery. The scale of the crisis will become more striking in April when the 54% rise in the energy price cap kicks in.
Pressure is kicking in on Rishi Sunak do more to help households whose spending power is suffering the biggest squeeze on record.
PM Johnson has endured his first resignation from government since receiving fines for breaking Covid laws. The PM is said to be facing a second fine for a further breach of restrictions.
The FTSE opens in the red down 0.27%.
Cable suffered yesterday dipping below the 1.30 mark to reach lows of 1.2974 after the CPI print, before rebounding into the US and Asia session due to USD weakness, with the pair now trading the 1.3135 region as we print.EURECB President Lagarde is unlikely to provide clarity on the timing of a rate hike in her speech later today. Market's expect she will stand pat on rates, whilst indicating the intention to tighten before year-end.
European shares have advanced this morning with the Euro Stoxx, CAC and DAX gaining 0.33%, 0.41% and 0.16% respectively as we print.
EURUSD was mixed yesterday reaching lows of 1.0809 late London session before rallying into US and Asia to sit in the 1.0910 region as we print. EURGBP dipped over yesterday's trading with the pair falling 0.38% intraday.USDThe USD retreated against a basket of currencies in the US session and into this morning with the DXY dipping 0.87% intraday, however the Fed's hawkish stance could limit the USD downside.
US retail sales data prints today - analysts expect a MoM increase of 0.6%, and YoY increase of 11%. Initial Jobless Claims are also expected to print at 171k.ASIA/PACIFICAsian stocks advanced with the Nikkei, Hang Seng and CSI gaining 1.22%, 0.56% and 1.25% respectively.
The PBOC is expected to trim its key policy rate tomorrow for the second time this year. Turkey are likely to refrain from rising rates for the 4th time this year despite inflation surging 60% - this will keep pressure on the central bank to support the currency through other means.ILSUSDILS was mixed over yesterday's session reaching highs of 3.2230 and lows of 3.1975.Data & EventsECB - rate decision, Lagarde speaks
US - Weekly Jobless claims, retail salesRussia/UkraineThe EU has warned member states that complying with Putin's demand to pay for gas in RUB will violate sanctions.
Joe Biden announced $800mio in additional military aid for Ukraine. He is also considering sending top officials including Kamala Harris to meet with President Zelenskiy.
The UN has warned that rising food prices driven by the war risk driving social unrest in the developing world.
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. |