China unexpectedly cuts rates to revive economy, risk of Euro-area recessions reaches highest since Nov 2022, TA-35 erases year-to-date losses.
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FX Rates
August 15, 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 1.2099 GBP/EUR 1.1821 EUR/USD 1.0235 USD/CAD 1.2842 EUR/CHF 0.9660 EUR/SEK 10.4817 EUR/NOK 9.8424 EUR/DKK 7.4385 USD/ILS 3.2335 AUD/USD 0.7065 NZD/USD 0.6390 USD/SGD 1.3748 USD/JPY 133.51 USD/CNH 6.7778 USD/INR 79.6038 EUR/ILS 3.3093 GBP/ILS 3.9119 USD/ZAR 16.3104
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GBP
This week sees UK inflation prints yet again. Data could show prices gaining as much as 9.8% in July. This follows a trend which the BoE predicts could reach more than 13% by October.
Andrew Bailey would be open to a review of the BoE’s mandate in light of criticism from Liz Truss.
Asking prices for UK homes fell 1.3% in August, according to Rightmove.
EURBloomberg survey’s have shown the risk of a euro-area recession has reached its highest since November 2020, as energy shortages threaten to drive inflation further. The probability determined by economists has risen to 60% from only 20% before Russia invaded Ukraine.
The Head of Germany’s financial regulator has said some smaller-sized banks could struggle as interest rates surge.
USDTraders appear to be betting that the Fed will shift to a slower pace of hikes, paving the way for US equities to rally further. Swap markets currently price in roughly 62-bps of tightening at the September meeting.
Lawmakers’ reaction to the search of Trump’s Florida home, had reinforced the deep partisan divide between democrats and republicans. This comes as Trump continues to lead Republican primary polling.
A congressional delegation will arrive in Taiwan today, two weeks after Nancy Pelosi’s visit flared Sino-ASIA/PACIFICChina unexpectedly cut a key interest rate for the second time this year, and begun to withdraw cash from the banking system, as Beijing tries to revive credit demand to bolster the COVID-stricken economy. Chinese bond yields fell, and CNH fell over 50-bps against the dollar. The move came just before economic data that were weaker than expected with Industrial production growth slowing to 3.8% versus an estimate of 4.3%.
ILSUSDILS trades 0.42% higher as we print, just below 3.24. The TA-35 has erased year-to-date losses through August.
Data & EventsNo major economic releases.
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