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.
-
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
-
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
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. |