Bank of England intervenes to prevent borrowing costs, Euro-area consumer confidence falls to lowest level since 2020. Biden administration expresses concern on UK fiscal policy.
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FX Rates
September 29, 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 1.0883 GBP/EUR 1.1217 EUR/USD 0.9703 USD/CAD 1.3691 EUR/CHF 0.9507 EUR/SEK 10.9503 EUR/NOK 10.4554 EUR/DKK 7.4365 USD/ILS 3.5334 AUD/USD 0.6477 NZD/USD 0.5693 USD/SGD 1.4379 USD/JPY 144.66 USD/CNH 7.1485 USD/INR 81.7900 EUR/ILS 3.4283 GBP/ILS 3.8454 USD/ZAR 17.9193
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GBP
Britain has awoken this week amid a financial crisis following the announcement of the government’s financial plan last week. The pound has lost 20% of its value against the dollar this year, and the borrowing costs acceleration prompted intervention from the Bank of England to safeguard Pensions funds and the mortgage market. Roughly 1,000 mortgage deals have been pulled from the market as expectations of the BoE’s tightening cycle rise. Market now price that interest rates will peak at 6.0% through next year.
EURAllegations of sabotage have been made against Russia, following the discovery of leaks in Danish and Swedish waters on the Nordstream pipeline. Russia denies these allegations.
Euro area consumer confidence falls to 93.7, the lowest print since 2020. EURUSD trades down -0.67% on the day.
USDMore than 2 million people have been ordered to evacuate as Hurricane Ian struck the Florida coastline.
The Biden administration expressed concern over the UK economy, which has triggered market turmoil this week. He encouraged Liz Truss’ to dial back tax cuts. Commerce secretary Raimondo warned that cutting taxes and raising government spending wont cool inflation.
ASIA/PACIFICAustralian inflation slowed slightly according to the first reading, signaling that price pressure may be easing because of the RBA rapid interest rate rises. CPI rose 6.8% through August, slowing from 7% the month prior.
Chinese GDP stabilized this quarter, with the next three months expected to be key to the nation’s recovery. This follows the first three quarters where covid lockdowns and supply chain issues weighed on economic activity
ILSUSDILS trades 0.8% higher intraday. Israel’s consensus GDP growth for 2023 has been cut to 3.1%.
Data & EventsSeveral ECB Speakers
Several BOE Speakers
Germany Sept CPI
US Jobless Claims
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| Source: Bloomberg | |
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