ECB could end year with positive rates; Macron and Le Pen Clash; Tumbling Yen weigh on Japan’s corporate bond market.
April 21, 2022
GBP/USD 1.3072 GBP/EUR 1.1966 EUR/USD 1.0924 USD/CAD 1.2462 EUR/CHF 1.0339 EUR/SEK 10.2503 EUR/NOK 9.5763 EUR/DKK 7.4399 USD/ILS 3.2166 AUD/USD 0.7455 NZD/USD 0.6804 USD/SGD 1.3607 USD/JPY 128.04 USD/CNH 6.4724 USD/INR 76.1063 EUR/ILS 3.5137 GBP/ILS 4.2045 USD/ZAR 15.1580
The UK government proposed to delay a vote on whether Boris Johnson should face a probe over the party gate row. The government has stated the vote should await the conclusion of the police investigation.
GBPUSD remains level on yesterday as we print, the FTSE 100 has opened down 0.32%.EUR
The ECB may lift policy rates above zero before the end of the year providing that the bloc does not suffer a significant economic shock. Money markets currently price rates to be at 0.75% by the end of the year.
Macron and Le Pen clashed in their only presidential debate just four days before the election. The main items on the agenda were immigration, the cost-of-living-crisis, and the EU.
The euro is being used less often as a global payment currency, transactions using the euro dropped to 35.4% in March, as inflation and the war in Ukraine weighing on the currency’s appeal.
EURUSD trades up 0.52% intraday. The STOXX has opened higher marginally, up 0.13% as we print.USD
Fed members are slowly joining the call for a 0.5% rate hike next month. Mary Daly has become the latest FOMC member to back the hawkish policy outlook.
The Fed Beige Book showed US economic growth was moderate through mid-April. Inflationary pressures and geopolitical developments continue to cloud the economic outlook.
The DXY trades down 0.32% intraday.ASIA/PACIFIC
Speculators on Chinese markets are losing enthusiasm over rebound hopes. Policy stimulus remains short of expectation. Shanghai yesterday reported a significant jump in the number of severe covid cases.
The tumbling Yen is adding volatility for Japan’s corporate bond market. Sales of yen-dominated notes are 31% lower than last year.ILS
USDILS trades down -0.1%. The pair has continued a slight overall uptrend throughout 2022.
A second rocket has been fired from the Gaza strip into Israeli territory this week.Data & Events
Euro-Area March CPI
US – Initial Jobless Claims
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