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US sets global record with over 1 million new Covid cases reported Monday. Sterling begins the year under pressure due to coronavirus fears and Brexit issues.
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FX Rates
January 4, 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 1.3488 GBP/EUR 1.1943 EUR/USD 1.1294 USD/CAD 1.2745 EUR/CHF 1.0370 EUR/SEK 10.2688 EUR/NOK 10.0155 EUR/DKK 7.4376 USD/ILS 3.0995 AUD/USD 0.7210 NZD/USD 0.6794 USD/SGD 1.3545 USD/JPY 115.84 USD/CNH 6.3778 USD/INR 74.5025 EUR/ILS 3.5009 GBP/ILS 4.1798 USD/ZAR 15.9375
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GBP
GBPUSD had a solid end to the year, closing in the 1.3530 region due to readjustments following the BOE rate decision and year end rebalancing. Entering 2022, GBPUSD dipped 0.73% yesterday to lows of 1.3430 before recovering to trade in the 1.3490 region as we print.
GBP is likely to remain on the backfoot as coronavirus fears and Brexit issues exert pressure on the currency. With new daily cases continuing to print high, PM Johnson warned that the NHS will be under substantial strain in the coming weeks. In addition, entering 2022 means that new Brexit rules are active, which may start to challenge the movement of goods and therefore the supply chain.
EURAfter ending the year in the 1.1380 region, EURUSD retreated into the start of 2022 declining 0.65% to sit in the 1.1295 region as we print.
Germany recently reported that Retail Sales increased by 0.6% MoM in November compared to expected decline of 0.5% however failed to provide any support for the currency. Germany’s unemployment rate prints today and is expected to remain unchanged.
USDBenchmark treasury yields have steadied after climbing across the curve overnight as investors brace for Fed rate hikes to start the year.
The Bloomberg USD spot index gained 0.63% over yesterday’s trading and into this morning. Markets will focus on today’s ISM Manufacturing PMI report which is projected to show a decline from 61.1 in November to 60.1 in December, whilst also taking watch of the treasury yields.
The S&P reached a new record high, up 0.64% whilst the Dow Jones and NASDAQ gained 0.68% and 1.2% respectively.
The US set a global record with more than 1 million new cases reported on Monday. This is more than twice the case count seen anywhere else at any time since the pandemic began more than two years ago. This comes even as tests are taken at home in which many do not register their result.
ASIA/PACIFICAsian stocks were mixed with the Nikkei gaining 1.77%, whilst the Hang Seng and CSI dipped 0.09% and 0.46% respectively as the PBOC withdrew net liquidity from the banking system. Oil held gains ahead of today’s OPEC+ meeting. Bitcoin traded around $46k.
ILSUSDILS was mixed over yesterday’s trading reaching lows of 3.0810 before rebounding to trade in the 3.1040 region as we print after the Bank of Israel met and kept the base rate at 0.10%.
Data & EventsGermany – Retail sales, Dec Unemployment
UK – Consumer Credit, Mortgage approvals, M4 money supply, Market PMI Manufacturing
Switzerland – Dec CPI
France – Dec CPI
Poland – Central Bank rate decision
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| Source: Bloomberg | |
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