Israel coalition collapses triggering fresh election: Bullard warns of ‘unmoored’ inflation expectations; EU set to agree candidate status to Ukraine.
June 21, 2022
GBP/USD 1.2298 GBP/EUR 1.1645 EUR/USD 1.0561 USD/CAD 1.2913 EUR/CHF 1.0181 EUR/SEK 10.6327 EUR/NOK 10.3646 EUR/DKK 7.4395 USD/ILS 3.4244 AUD/USD 0.6981 NZD/USD 0.6358 USD/SGD 1.3850 USD/JPY 135.20 USD/CNH 6.6948 USD/INR 78.0725 EUR/ILS 3.6163 GBP/ILS 4.2111 USD/ZAR 15.9643
The UK faces widespread rail disruption as the largest industrial action in 30 years begins.
Britain’s local authorities have stated that they cannot afford to pay a mandated increase in the minimum wage without help from Westminster.
GBPUSD trades 0.4% higher, and the FTSE opens 0.17%.EUR
The ECB’s anti-crisis tool shows the bank’s determination to defend the euro’s integrity. They will also try to protect the economic and political unity of the bloc with the anti-fragmentation tool.
The EU is set to formally grant Ukraine candidate status later this week. Meanwhile, Sweden and Finland continue talks with Turkey to join NATO.USD
James Bullard warned that US inflation expectations could be come “unmoored” without credible fed action. He stressed that the current macroeconomic situation has dented the fed’s credibility.
Biden will decide this week on whether to declare a federal gasoline tax holiday, to cool energy driven inflation. He also reiterated his belief that a US recession was not an inevitability.ASIA/PACIFIC
RBA Chief Lowe signalled he will only raise rates by 25 basis-points at the July meeting. This quickly saw markets scrap bets of a 75 basis-point jump.
China’s outbreaks are shifting to its south cost, with a flare-up in Shenzhen triggering lockdowns and mass-testing.ILS
Israel is headed for its fifth election within four years, as the ruling coalition headed by PM Naftali Bennett collapsed. This political upheaval could create an opening for Benjamin Netanyahu to return to power, as his Likud party leads in the polls.
USDILS trades -0.3% lower, following a weaker dollar throughout the Asian session.Data & Events
ECB’s April Current Account
UK CBI June trends
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