BoE expected to hike rates by 50-bps; Fears over Sino-US relations eased
August 4, 2022
GBP/USD 1.2171 GBP/EUR 1.1959 EUR/USD 1.0177 USD/CAD 1.2845 EUR/CHF 0.9785 EUR/SEK 10.3858 EUR/NOK 9.8863 EUR/DKK 7.4429 USD/ILS 3.3578 AUD/USD 0.6969 NZD/USD 0.6302 USD/SGD 1.3796 USD/JPY 134.17 USD/CNH 6.7663 USD/INR 79.7663 EUR/ILS 3.4172 GBP/ILS 4.0866 USD/ZAR 16.7271
The Bank of England may raise its policy rate by 50-bps today, its largest hike in 27 years. Swap markets are currently pricing in 45-bps. The Bank will also outline how it will reduce the £1 trillion worth of stimulus pumped into the economy.The pound strengthens ahead of today’s BoE meeting, trading 0.2% higher against the dollarEUR
European stocks extended gains for a second day, as fears over Sino-US relations eased, driving the focus back to the ongoing earning season. German factory orders slipped less than expected falling by -9%, compared to the -9.2% consensus.
EURUSD trades 0.2% higher.USD
US futures rallied overnights on the news of earnings and robust economic data. Yields on treasuries rose following hawkish talk from Fed officials.
China begun military drills around Taiwan in the early hours of the morning. The white house is urging democrats not to support a bill declaring Taiwan as a major non-NATO ally.
The dollar slips -0.16% as we print. Jobless claims are seen edging higher to 260,000. The June trade deficit is expected to narrow to $80 billion.ASIA/PACIFIC
Chinese equities rose with Alibaba leading Chinese tech firms higher.
Markets have been dialing back rate hike bets in emerging Asia as growth concerns steadily overtake inflation angst.ILS
USDILS trades 0.1% lower, slipping below 3.36 throughout yesterday’s session.Data & Events
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