ECB call emergency meeting on bond market; Fed could accelerate tightening to steepest rate since 1994; BoE faces pressure from weak pound and hawkish fed.
June 15, 2022
GBP/USD 1.2034 GBP/EUR 1.1493 EUR/USD 1.0471 USD/CAD 1.2969 EUR/CHF 1.0458 EUR/SEK 10.6195 EUR/NOK 10.4544 EUR/DKK 7.4393 USD/ILS 3.4505 AUD/USD 0.6907 NZD/USD 0.6219 USD/SGD 1.3911 USD/JPY 134.75 USD/CNH 6.7293 USD/INR 78.0775 EUR/ILS 3.6129 GBP/ILS 4.1524 USD/ZAR 16.0108
The BoE is facing a difficult task in balancing borrowing costs, with high recession risk. However, a weakening pound, and an increasingly hawkish Fed could pressure the BoE to hike further.
The UK Government was forced to cancel its first deportation flight following intervention from the European court of human rights.
GBPUSD slipped below 1.21 yesterday finding fresh yearly lows, as weak economic data and potential policy divergence from the Fed added to sterling weakness.EUR
The ECB is to hold an emergency meeting today to discuss borrowing turmoil, as borrowing costs for the bloc’s most indebted countries have risen to 8-year highs.
Euro-area industrial production may have risen 0.5% in April after contracting 1.8% in MarchUSD
Expectations are building around a 0.75% hike from the Fed, which would be the steepest tightening since 1994. The Fed is scrambling to keep up with surging inflation, following May’s shock CPI print. The FOMC might be hoping that faster tightening could restore market confidence.
US Retail sales are seen marginally advancing against last month, consensus sees 0.7% growth.ASIA/PACIFIC
China’s economy has showed a mixed recovery in May. Industrial production unexpectedly increased while the property market continues to slump, and consumer spending declined.
Australia’s June consumer sentiment, dropped 4.5% to 86.4, marking 7 straight months of sentiment decline.ILS
USDILS trades 0.4% lower as we print, trading roughly 3% higher through June.Data & Events
FOMC Rate Decision
France May CPI
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