Global growth concerns rise, greenback rallies

The greenback is off to another strong start to the week, as the DXY is up 1.09%. The dollar strength is due to  heighted concerns for global growth. Many countries are facing fast growing inflation, and the prolonged war in eastern Europe is a cause for concern to investors. Oil prices start the week slightly down, causing commodity linked currencies to slide.

• FX Rates
  May 9, 2022

  Rates 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.

  
  

  EUR/USD	1.0546
  GBP/USD	1.2344
  USD/CAD	1.2919
  AUD/USD	0.7019
  USD/JPY	130.77
  USD/CNH	6.7643
  USD/ILS	3.4399
  USD/MXN	20.2760
  USD/CHF	0.9925
  USD/INR	77.4637
  USD/BRL	5.1335
  USD/SGD	1.3909
  USD/DKK	7.0565
  USD/SEK	10.0234
  USD/NOK	9.5580

  
  

• USD

  The dollar continues to strengthen and it briefly rose to its strongest levels in two years. The ongoing Russian Ukrainian War and lockdowns in China are a concern for global growth, leading to dollar strength. The Fed announced that they plan to continue with rate increases in 50bps  increments, and they will not look to make larger hikes in a single meeting.

  GBP

  Sterling continues to weaken against the dollar after falling more than 200 pips last week. Last week the BOE raised interest rates 50 basis points. The BOE’s signaled concern of a UK recession as soon as Q4 2022, which caused sterling to fall against its peers.

  EUR

  EURUSD rates remain mostly unchanged from last Friday. The EUR continues to trade near $1.05.

  CAD

  The loonie fell against the dollar as oil prices slide. USDCAD rates reached lows that were last seen in December 2021. WTI Oil and Brent Crude are down 2.35% and 2.23% respectively on the day.

  ASIA/PACIFIC

  AUDUSD rates are holding slightly above 0.7000. Sliding oil prices and pressure on other commodities are weighting on the currency to start the trading day.