Diplomatic efforts to quell Ukraine crisis struggle, UK living standards falling at fastest rate since 2013.
February 15, 2022
GBP/USD 1.3560 GBP/EUR 1.1948 EUR/USD 1.1348 USD/CAD 1.2715 EUR/CHF 1.0480 EUR/SEK 10.5650 EUR/NOK 10.0599 EUR/DKK 7.4423 USD/ILS 3.2387 AUD/USD 0.7152 NZD/USD 0.6638 USD/SGD 1.3458 USD/JPY 115.56 USD/CNH 6.3512 USD/INR 75.4438 EUR/ILS 3.6754 GBP/ILS 4.3916 USD/ZAR 15.0432
UK living standards are falling rapidly, with inflation adjusted wages falling 1.5% last year. The number of employees on payrolls increased by 108,000 in January. The workforce is 436,000 larger than pre-pandemic levels. UK job vacancies also rose by 513,700 in the three months to January.
The FTSE100 closed -1.69% lower yesterday however has reversed losses to open 0.27% higher this morning. GBPUSD trades 0.24% higher as we print.EUR
Ukraine’s Zelensky shook markets after claiming that Wednesday would see Russia begin military action. This was soon clarified that Zelensky was making a sarcastic quip. Euro-area GDP growth is projected to stay at 0.3% in Q4 2022. Spanish January inflation is expected at 6%.
European markets declined yesterday due to geopolitical risk. The STOXX 600 closed 1.83% lower, whilst the DAX lost 2.02%. EURUSD trades 0.23% higher intraday.USD
The US announced that a diplomatic resolution seems increasingly unlikely, as Russian military preparations continue. This comes despite comments from the Russian foreign minister that the stand-off might be resolved peacefully, claiming there was still a ‘way forward’.
The Fed has expressed concern at leveraged lending over ‘weak loan structures’, most of this debt is held by non-bank firms.
A mixed day for US markets yesterday, the Dow Jones closed lower by -0.29% meanwhile the NASDAQ finished up 0.23%. The DXY trades down -0.17% as we print.ASIA/PACIFIC
Chinese shares outperformed yesterday following a PBOC policy announcement to aid growth, offering $15.7 billion into the banking system through loans.
Japan’s economy grew with GDP accelerating to an annual pace of 5.4% in the three months through December. The BOJ continues with fixed-rate bond buying.
Asian equities outside mainland China have struggled throughout today’s session. The Nikkei and Hang Seng closed lower by -0.79% and -0.82% respectively. The CSI saw growth of the back of PBOC policy, gaining 1.06%.ILS
USDILS currently trades down 0.32% at 3.244. The pair has gained 3.62% over the last month.
Israel’s TA-35 rises 0.4% in early trading.Data & Events
Germany’s Scholz holds talks with Putin.
UK – Jan Jobless claim
ES – Jan CPI
EU - 4Q GDP
DE – ZEW Survey
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