ECB must be more aggressive on inflation says survey, UK inflation to hit 14% - Chamber of Commerce, bonds slip into global bear market.
September 2, 2022
GBP/USD 1.1565 GBP/EUR 1.1570 EUR/USD 0.9995 USD/CAD 1.3144 EUR/CHF 0.9784 EUR/SEK 10.7471 EUR/NOK 10.0185 EUR/DKK 7.4369 USD/ILS 3.3739 AUD/USD 0.6800 NZD/USD 0.6079 USD/SGD 1.4022 USD/JPY 140.24 USD/CNH 6.9094 USD/INR 79.7979 EUR/ILS 3.3723 GBP/ILS 3.9019 USD/ZAR 17.2873
British employers added the most new jobs so far this year, and the second highest number on record.
The British chamber of commerce forecast has determined that the UK is already in the midst of a recession with inflation set to hit 14% this year.EUR
A survey of economist has determined that the ECB must be more aggressive in fighting inflation. 66% of respondents said the ECB has responded too slowly, and now see rates rising to 1.5% in September. Previous expectations saw interest rates peaking at 1.25%.
The Nord Stream pipeline has been closed for three days and is set to resume operation tomorrow. Germany and the EU continue to fear future closures as winter looms.USD
Bonds slipped into their first bear market in a generation, as central bankers globally are making aggressive pivots to combat inflation.
The dollar almost reached yearly highs once again ahead of jobs data. Jobs data will likely weigh on the Fed’s policy path. Consensus sees jobs increasing by roughly 300,000, noticeably short of last month’s 528,000 increase.ASIA/PACIFIC
South Korean inflation eased more than expected in August reducing pressure on the Korean central bank to deliver another large hike.
Australia is also set to raise migration quotas to ease a worsening labour crisis.ILS
USDILS trades slightly lower through today, after briefly breaking through 3.4 yesterday for the first time in over a month.Data & Events
US Jobs Report
US July Factory Orders
Trading in financial instruments may involve a high degree of risk and may not be suitable for all investors. Trading in financial instruments can result in both loss and profit. Investors should carefully consider whether financial instruments suit their needs, financial resources and personal circumstances.
The information contained in this material is solely for informational purposes only and it is not and should not be construed as an offer or a solicitation of an offer to buy or sell any financial instruments and cannot be relied upon as a representation that any particular transaction necessarily could have been or can be effected at the stated prices. This material does not contrue advice.
For more analysis on FX markets or information regarding SVB's FX services:
0800 023 1440 from within the UK
+44 207 367 7880 from overseas
See all of SVB's latest FX information and commentary.
© 2023 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB).
Silicon Valley Bank is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. FC029579. Silicon Valley Bank is authorised and regulated by the California Department of Business Oversight and the United States Federal Reserve Bank; authorised by the Prudential Regulation Authority with number 577295; and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. Silicon Valley Bank is a subsidiary of SVB Financial Group, a Delaware corporation and is an affiliate of SVB Financial Group UK Limited. SVB Financial Group UK Ltd is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. 5572575 and is authorised and regulated by the Financial Conduct Authority, with reference number 446159. SVB Financial Group and its subsidiary Silicon Valley Bank are members of the Federal Reserve System and Silicon Valley Bank is a member of the FDIC.
Your eligible deposits with Silicon Valley Bank UK are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered. Please click here for further information or visit http://www.fscs.org.uk. For more detailed information about coverage and limits, please review our FSCS Information Sheet at http://www.fscs.org.uk.
This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. Opinions expressed are our opinions as of the date of this content only. The material is based upon information which we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.