Equities rise as Powell downplays aggressive hiking. UK to axe civil service jobs.
May 13, 2022
GBP/USD 1.2218 GBP/EUR 1.1735 EUR/USD 1.0412 USD/CAD 1.3004 EUR/CHF 1.0416 EUR/SEK 10.5129 EUR/NOK 10.2434 EUR/DKK 7.4408 USD/ILS 3.4071 AUD/USD 0.6900 NZD/USD 0.6253 USD/SGD 1.3944 USD/JPY 128.81 USD/CNH 6.7961 USD/INR 77.3075 EUR/ILS 3.5477 GBP/ILS 4.1627 USD/ZAR 16.0220
The BoE has come under criticism from MPs for failing to contain inflation, with additional pressure being added for the central bank to hike rates further in a bid to contain it.
The UK could cut 90,000 civil service jobs, freezing recruitment, with the saved costs set to be redirected to helping people cope with the cost-of-living crisis.
The FTSE trades up 1.15% through the London Session, GBPUSD trades up 0.1%EUR
Euro-area industrial production is expected to fall in March, breaking a four-month streak of growth. Output is seen dropping 2%, with added downside pressure from supply chain snarls in China.
EURUSD trades 0.31% higher as we print, European equities have opened higher currently up 1%.USD
Equities rose on comments from Jerome Powell, pushing back against speculation of more aggressive rate-hikes. He also admitted the Fed has been behind the curve, saying they should have raised rates sooner.
The $40 billion dollar deal of Ukraine aid has been delayed in the Senate, following the need to appoint an official with oversight powers.
The DXY trades down 0.27%, following Powell’s comments.ASIA/PACIFIC
North Korea has revealed a widespread Covid outbreak through the country. Shanghai has planned to have “no community spread” by mid-May.
Chinese new lending was expected to slow in April. Calls are growing for China’s government to sell more bonds to pay for extra stimulus.ILS
USDILS has dropped -1.06% intraday to 3.41.Data & Events
Euro-area Industrial Production
US Import Price Index
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