Bank of England expands final week of gilt support, Fed emboldened as unemployment returns to historic low, French industrial activity fails to expand amid high energy costs and uncertainty.
October 10, 2022
GBP/USD 1.1063 GBP/EUR 1.1408 EUR/USD 0.9698 USD/CAD 1.3755 EUR/CHF 0.9679 EUR/SEK 10.9729 EUR/NOK 10.4199 EUR/DKK 7.4384 USD/ILS 3.5576 AUD/USD 0.6307 NZD/USD 0.5585 USD/SGD 1.4370 USD/JPY 145.46 USD/CNH 7.1464 USD/INR 82.4138 EUR/ILS 3.4571 GBP/ILS 3.9440 USD/ZAR 18.1861
The bank of England has announced an expansion of its measures to support market functionality as the central bank’s emergency gilt buying enters its final week. The BoE will increase the size of its buying operations to £10 billion up from £5 billion previously.
Liz Truss could be heading towards her second U-turn, over a previous pledge by her predecessor, Boris Johnson, to keep benefits inline with inflation. Market cautiously await Kwarteng’s revised fiscal plans which could arrive sooner than expected, the announcement is widely expected to outline spending cuts to balance the books from his previous ‘mini-budget’ which triggered market turmoil.EUR
French industrial activity is slowing in the face of rising uncertainty and surging energy costs according to the Bank of France’s monthly business survey. The poll of 8,500 firms showed a stabilisation in September, instead of the expected increase.
The EU is evaluating a case that the US tax law changes as part of the inflation reduction act breach international trade law. The EUR trades 0.4% lower against the dollar, as the Ukraine was escalates following an attack on the significant bridge between Crimea and the mainland.USD
The Biden administrations new restrictions on technology exports to China could significantly impact the country’s ability to develop technology required both economically and militarily. The moves are the most aggressive against China as the US attempts to stop China from developing capabilities that it sees as a threat.
Non-farm payrolls last Friday, highlighted further robustness in the US economy as unemployment returned to a historic low, leaving the Fed emboldened on their hawkish monetary policy path. The dollar and treasury yields climbed following the data release.ASIA/PACIFIC
The Malaysian PM has dissolved parliament paving the way for early election as his looks to opportunistically strengthen his party’s position following several successful local polls.
Chinese residents are experiencing the worst job market prospects on record, amid a slowdown in the economy, a worrying sign as communist party officials prepare to hold a key political meeting next week.ILS
USDILS trades roughly flat on its close on Friday.
The Israeli supreme court rules the Arab Balad party should remain on the ballot for the November 1st election, despite criticism from other parties.Data & Events
ECB Centeno, de Cos, Lane Speak
Annual IMF meeting
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