BoJ move a “sensible” one according to IMF, UK borrowing surged to record highs, US house construction continues to decline.
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From SVB's EMEA FX Team
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FX Rates
December 21, 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 1.2133 GBP/EUR 1.1430 EUR/USD 1.0616 USD/CAD 1.3618 EUR/CHF 0.9836 EUR/SEK 11.0732 EUR/NOK 10.4829 EUR/DKK 7.4393 USD/ILS 3.4756 AUD/USD 0.6671 NZD/USD 0.6293 USD/SGD 1.3520 USD/JPY 131.70 USD/CNH 6.9816 USD/INR 82.8050 EUR/ILS 3.6895 GBP/ILS 4.2169 USD/ZAR 17.3160
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GBP
UK government borrowing surged in November as public finances came under mounting pressure from rising debt-interest payments. The deficit stood at £22 billion, the highest monthly total since 1993. These figures could hamper the chances of Sunak’s government appeasing striking unions in pay disputes.
EURMarket expectations of how high the ECB will raise interest rates have spiked over the last week. Expectations for the ECB’s terminal rate jumped from 2.9% to 3.25% after the governing council emphatically signalled interest rates will need to go higher.
USDNew US home construction continued to decline in November and permits plunged as high borrowing costs paired with widespread inflation eroded housing affordability and demand.
The governments annual revision in early Feb to the US payroll figures may garner more attention with the Philadelphia Fed finding their early benchmarking could suggest substantially weaker job growth in 2022 than official figures suggest.
ASIA/PACIFICThe IMF has said that the Bank of Japan’s decision to lift the cap on benchmark bond yields was a “sensible step”. According to the consensus, the move makes it more likely the Bank of Japan will abandon its negative interest rate policy.
ILSUSDILS trades higher intraday near 3.47.
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| Source: Bloomberg | |
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