Boris seeks to press on despite damaging rebellion. Yellen wrong to characterise inflation as transitory. German industrial production recovers, yet still down on the year.
June 8, 2022
GBP/USD 1.2547 GBP/EUR 1.1739 EUR/USD 1.0688 USD/CAD 1.2546 EUR/CHF 1.0437 EUR/SEK 10.4849 EUR/NOK 10.1285 EUR/DKK 7.4390 USD/ILS 3.3455 AUD/USD 0.7192 NZD/USD 0.6449 USD/SGD 1.3753 USD/JPY 133.64 USD/CNH 6.6889 USD/INR 77.7625 EUR/ILS 3.5755 GBP/ILS 4.1975 USD/ZAR 15.3595
Boris Johnson will press ahead with legislation to override parts of the Brexit deal. This could inflame tensions with MPs, of which 41% voted to oust him on Monday. Meanwhile, Rishi Sunak promised to cut taxes on businesses. These initiatives may be set to distract and move on from the so-called ‘decisive’ victory in Monday’s no-confidence vote.
The RMT union plans to lead a three-day strike across the national railway system after failing to reach a pay deal.
GBPUSD trades down -0.35% through today, the FTSE 100 trades down -0.16%EUR
German industrial production is seen gaining 1.2% after a 3.9% drop in March. Overall, a 2.4% decline from a year earlier.
Poland’s central bank is seen hiking rates 0.75% to 6%, its ninth consecutive hike would come amid the highest inflation in 25 years.
EURUSD trades -0.15% lower intraday, the Stoxx 600 trades 0.1% higher.USD
US fuel stockpiles have gained for the second consecutive week, which could ease the impact of rising fuel costs on households. Janet Yellen has said inflation is likely to stay high, and surging prices should not have been categorised as ‘transitory’.
Yesterday saw the busiest voting day for the US. Notably, incumbent republicans survived challenges from the right. Challengers alleged the incumbents were not supportive enough of Trump. This comes against a much-anticipated Trump run for president in 2024.ASIA/PACIFIC
The Hang Seng Tech Index jumped 4% after China approved 60 new online game titles. Other Asian benchmarks mostly rose as a pullback in bond yields eased concerns of rising rates.
Economists suspect that the RBA surprise 0.5% hike, could signal how far the central bank is behind inflation.ILS
USDILS had jumped earlier to 3.348 levels, however, has since slipped slightly. The cross trades 0.1% higher as we print.Data & Events
Germany Industrial Production
Italy retail Sales
UK Construction PMI
Euro-Area 1Q Household consumption, employment, GDP
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