Boris faces senior resignations as scandal continues; Euro slides closer to parity.
July 6, 2022
GBP/USD 1.1976 GBP/EUR 1.1675 EUR/USD 1.0258 USD/CAD 1.3028 EUR/CHF 0.9929 EUR/SEK 10.7513 EUR/NOK 10.3111 EUR/DKK 7.4409 USD/ILS 3.5143 AUD/USD 0.6808 NZD/USD 0.6183 USD/SGD 1.4024 USD/JPY 135.26 USD/CNH 6.7073 USD/INR 79.3163 EUR/ILS 3.6048 GBP/ILS 4.2085 USD/ZAR 16.6882
Boris Johnson’s government was left in ruins yesterday following two resignations from senior cabinet officials, Rishi Sunak and Sajid Javid, with both of their resignation letters singling out integrity and honesty as important factors. The PM is set to face both PMQs and the Parliament Liaison Committee where he will come under fire over his integrity.
LSE predicts that had the BOE responded to inflation earlier, it could have driven UK unemployment to levels last seen in the 1990s.EUR
Macron is under increasing pressure to introduce a windfall tax on oil, gas and transport giants, with the funds raised used to protect consumers from higher prices.
Euro weakness, as it slides closer to dollar parity highlights the poor growth sentiment surrounding Europe. If the euro were to slide 2.5% further, it would reach parity. Yesterday the euro reached a 20-year low.USD
Investors will scour the Fed’s June meeting minutes to ascertain what is next. Some expect the minutes to confirm that the Fed is prioritising price stability over achieving a soft landing.
The ISM Services index will likely fall through June, with consensus at 54 down from 55.9ASIA/PACIFIC
Asian equities generally fell following lingering growth concerns. Malaysia raised its key rate by 0.25% to 2.25% as policy makers feel pressure from inflation and the stronger dollar.
Anthony Blinken and his US counterpart will have a candid discussion about the war in Ukraine with his Chinese counterpart at the G-20 summit.ILS
USDILS trades up marginally by 0.09%. above 3.5. USDILS trades around highs not seen since the start of the pandemic.Data & Events
FOMC June Minutes
UK Construction PMI
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