Sterling whipsaws as Bank of England hikes rates by 25bps, with 3 MPC members voting for more aggressive moves. The Yen hits 24 year lows as Bank of Japan maintain loose monetary policy.
June 17, 2022
GBP/USD 1.2298 GBP/EUR 1.1711 EUR/USD 1.0503 USD/CAD 1.2965 EUR/CHF 1.0139 EUR/SEK 10.7003 EUR/NOK 10.4663 EUR/DKK 7.4387 USD/ILS 3.4493 AUD/USD 0.6989 NZD/USD 0.6322 USD/SGD 1.3860 USD/JPY 134.32 USD/CNH 6.7067 USD/INR 78.0750 EUR/ILS 3.6229 GBP/ILS 4.2415 USD/ZAR 15.9165
Sterling had a volatile day yesterday, losing over 1% against the Dollar as the Bank of England raised rates by 25bps. Markets were initially disappointed with the move, with many calling for a more aggressive 50bp hike. Losses were reversed and the pound closed the day 2.5% higher, as traders digested comments that more forceful moves may be coming. Bonds plunged as traders bet on rates hitting 3% this year.EUR
EURUSD hit session highs late yesterday afternoon following comments from Christine Lagarde that the central bank intends to limit bond spreads and tackle any irrational moves. The pair gained 1.5% to trade just below 1.0600, before reversing gains during the Asian session.USD
After yesterdays sell-off, the dollar is holding some ground, with the DXY up 0.4% during the Asian session and 10-year treasury yields up 1%. Equity futures rallied as the markets stabilized from one of the worst weeks since the pandemic started. US mortgage rates have surged to the highest rate in 35 years, amidst ongoing inflationary pressures and rate hikes.ASIA/PACIFIC
The Yen has declined 1.8% against the dollar, as the Bank of Japan maintained its loose monetary policy stance, adding further divergence with its peers.ILSUSDILS trades 1.89% higher on the week so far, printing around 3.4500 at time of writing.Data & EventsEuro Area - Inflation Rate
US - Industrial Production
Fed Chair Powell speechCHF
The Swiss franc is trading 3% higher against the Dollar, as the Swiss National Bank delivered a surprise interest rate hike.
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