ECB seen ending QE paving way for first hike. Explosion at LNG facility to interfere with energy supply chains; Boris rebrands government with new housing policy. Shanghai re-enters Lockdown, whilst Chinese exports surpass estimates.
June 9, 2022
GBP/USD 1.2511 GBP/EUR 1.1682 EUR/USD 1.0711 USD/CAD 1.2573 EUR/CHF 1.0482 EUR/SEK 10.5361 EUR/NOK 10.1639 EUR/DKK 7.4390 USD/ILS 3.3381 AUD/USD 0.7175 NZD/USD 0.6446 USD/SGD 1.3756 USD/JPY 133.87 USD/CNH 6.6893 USD/INR 77.7975 EUR/ILS 3.5752 GBP/ILS 4.1763 USD/ZAR 15.2636
Boris Johnson is attempting to rebrand his leadership, with a major announcement on housing policy today. He will vow to help savers and make mortgage financing easier to access.
GBPUSD trades down -0.23%, and the FTSE 100 closed down -0.08% outperforming European and US equities yesterday.EUR
The ECB is expected to end QE, paving the way for its first-rate hike since 2011 when officials meet today. Markets will closely scrutinise ECB chief Lagarde’s comments to gauge whether a 0.5% hike could be on the cards in July.
Natural gas prices have tumbled 11% following an explosion in a major US LNG terminal. Roughly 1/5 of US exports went via the Texas facility.USD
A study of yield curve behaviour in the US has determine that the chances of a recession before the latter half of 2024 are slim. Some CEOs see US inflation easing due to large inventories being accumulated by US businesses.
Biden announced a ‘Americas Partnership for Economic Prosperity’, a series of non-binding agreements that should help the Western Hemisphere bounce back from the pandemic.ASIA/PACIFIC
Asian markets mostly fell after continuously high oil prices stoked inflation concerns, and Shanghai introduced new Covid measures, indicating that China has not yet broken free from its Omicron struggle. Roughly 2.7 million people have been lockdown in shanghai.
China’s exports grew 16.9% YoY in May, more than double the estimated pace. Imports also beat consensus rising 4.1%.
The Yen has made some recovery during today’s session, with USDJPY falling 0.3%, following weeks of sustained dollar strength.ILS
USDILS trades flat on yesterdays close. USDILS is struggling to find directional momentum trading sideways since the 23rd May.Data & Events
ECB Monetary Policy
US Initial Jobless Claims
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