Beijing stimulus pledge rallies global equities, US to end release of oil reserves in October, Fed could continue to tighten into recession if needed.
August 25, 2022
GBP/USD 1.1854 GBP/EUR 1.1827 EUR/USD 1.0022 USD/CAD 1.2919 EUR/CHF 0.9640 EUR/SEK 10.5646 EUR/NOK 9.6382 EUR/DKK 7.4380 USD/ILS 3.2646 AUD/USD 0.6975 NZD/USD 0.6232 USD/SGD 1.3894 USD/JPY 136.59 USD/CNH 6.8505 USD/INR 79.8713 EUR/ILS 3.2716 GBP/ILS 3.8696 USD/ZAR 16.8568
British businesses may have to pay up to four times more than 2020 energy prices when energy contracts are renewed. British government spending on support for energy costs is below that of France, Germany and Italy.
GBPUSD trade 0.36% higher intraday, meanwhile the FTSE 100 trades 0.7% higher as global fears surrounding Chinese growth subside.EUR
The EU's €280 billion worth of aid set aside for the energy crisis may not be suitable to help with the scale of the crisis worsening.
The ECBs July minutes will be analysed today, with markets watching for more details on the central bank’s crisis-management tool, and to determine the likelihood of another 50-bps hike. French Finance Minister Le Maire has stated that the government do not see French inflation exceeding 10%.USD
The US is set to end its release of strategic oil reserves in October which could exacerbate the winter energy crisis, both in the US and globally.
Fed speak from the Jackson Hole Symposium has reinforced the Central bank’s commitment to Quantitative tightening. Some see the Fed continuing with tightening even throughout the first months of a recession, should that occur.ASIA/PACIFIC
Asian stocks rose alongside global markets as Beijing pledge further action to bolster the Chinese economy, in addition to the program of the PBOC to generate stimulus and raise borrowing demand.
The BOK hiked its key rate by 25-bps to 2.5%.
US - South Korean drills have been watched closely throughout Asia, as Beijing assesses its policy on Taiwan.ILSUSDILS trades -0.2% lower as we print, slightly above 3.26Data & EventsECB July Meeting Minutes
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