ECB committed to containing bond market panic; Macron loses outright majority; Beijing claims Taiwan strait is not international waters.
June 20, 2022
GBP/USD 1.2222 GBP/EUR 1.1624 EUR/USD 1.0515 USD/CAD 1.2997 EUR/CHF 1.0157 EUR/SEK 10.6920 EUR/NOK 10.4536 EUR/DKK 7.4387 USD/ILS 3.4524 AUD/USD 0.6980 NZD/USD 0.6343 USD/SGD 1.3866 USD/JPY 134.69 USD/CNH 6.6820 USD/INR 78.0038 EUR/ILS 3.6300 GBP/ILS 4.2193 USD/ZAR 16.0401
More than 70% of consumers in the UK are expecting the cost-of-living to increase further. This was the highest amongst 18 nations surveyed.
GBPUSD trades flat on Friday’s close, as the FTSE opens 0.2% higher.EUR
Macron lost his outright majority in the French Parliament in an unexpected surge in far-right support.
ECB’s Olli Rehn has said that the ECB is committed to containing bond-market panic. Today features at least half a dozen ECB speakers, hopefully shedding light on how the ECB will defend against rising borrowing costs.USD
The Fed’s Waller has publicly backed another 0.75% hike next month, should economic data come as the market expects. Some major banks are predicting a mild US recession by the end of the year.
The dollar trades 0.3% weaker as we print.ASIA/PACIFIC
Macau shut schools amid new covid cases, meanwhile Shenzhen locked down two districts. The US rejected claims that the Taiwan strait is not international waters.
Kishida has stated that the BOJ’s easing policy should continue as is for now. This comes as his party’s popularity fell 5% to 48% amid concerns over higher prices.ILS
USDILS has slipped slightly as we print, trading -0.15% lower. The Israel 10-year bonds fell 2.2 bps to 0.65% today.Data & Events
German May PPI
Euro-Area April Construction Output
Several ECB speakers
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