Rishi Sunak sets out measures to address the cost of living crisis in the UK, Global stocks rally with the adjusted risk-on sentiment
-
FX Rates
May 27, 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 1.2618 GBP/EUR 1.1756 EUR/USD 1.0733 USD/CAD 1.2744 EUR/CHF 1.02911 EUR/SEK 10.5598 EUR/NOK 10.2108 EUR/DKK 7.4396 USD/ILS 3.3482 AUD/USD 0.7145 NZD/USD 0.6524 USD/SGD 1.3693 USD/JPY 127.08 USD/CNH 6.7365 USD/INR 77.65 EUR/ILS 3.5961 GBP/ILS 4.2246 USD/ZAR 15.6454
-
GBP
Chancellor Rishi Sunak has set out measures to address the rising cost of living within the UK. One off payment’s will be given to the most vulnerable households – 8 million people are expected to receive £650 as a one payment whilst all households will receive £400 discount on energy bills. Sunak states that it will be funded by a one-off windfall tax on oil and gas companies.
GBPUSD trades higher after yesterday’s session with the pair gaining as much as 1.17% this week to sit in the 1.2620 region as we print.
EURTurkey’s foreign minister has warned Greece against exceeding limits on its military forces allowed on islands in the Aegean Sea as the US has asked the NATO allies to step back from recent tensions.
Europe is developing contingency plans in case there is a complete breakdown of Russian gas imports – they are aiming to store as much gas as possible and are expecting to replace most of Russian shipments later this year.
European stocks open in the green with the Euro Stoxx, CAC and DAX trading up 0.62%, 0.65% and 0.53% as we print.
EURUSD rallied during yesterday’s trading as the risk-on market sentiment keeps weighing on the dollar. EURUSD has traded through the 1.07 handle again to sit in the 1.0744 region as we print up 2.08% this week. Increased hawkishness from most ECB’s rate-setters has also supported the EUR.
USDThe dollar continued its downward trajectory yesterday as the risk-on market sentiment continues to weigh on the USD. The DXY trades down 1.35% this week.
Markets will be paying close attention to US inflation data out today., The core PCE deflator is expected to show price growth has slowed to 4.9% in April from 5.2% in March. Personal income data will also be released.
US stocks rallied yesterday with the NASDAQ, S&P and Dow Jones gaining 2.68%, 1.99% and 1.61% respectively.
ASIA/PACIFICThe global risk on sentiment meant Asian stocks also rallied with the Hang Seng gaining as much as 2.19%.
ILSUSDILS was mixed over Thursday’s session reaching highs of 3.3742 early morning before dipping to 3.34 late London. USDILS sits in the 3.3560 region as we print.
Data & EventsSpain – retail sales
Euro Area – money supply, ECB Lane speaks
US – personal income spending, core PCE deflator
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. |