Equities slip following concerns of Fed’s aggressive tightening path; UK GDP shows economy losing momentum. GBPUSD and EURUSD at yearly lows.
May 12, 2022
GBP/USD 1.2199 GBP/EUR 1.1664 EUR/USD 1.0460 USD/CAD 1.3014 EUR/CHF 1.0413 EUR/SEK 10.5687 EUR/NOK 10.2870 EUR/DKK 7.4412 USD/ILS 3.4591 AUD/USD 0.6892 NZD/USD 0.6251 USD/SGD 1.3940 USD/JPY 128.83 USD/CNH 6.8121 USD/INR 77.4850 EUR/ILS 3.6180 GBP/ILS 4.2197 USD/ZAR 16.1949
UK GDP for the first quarter came in lower than expected at 0.8% growth, the UK economy contracted by 0.1% through March. The reading highlights a loss of momentum which could echo comments from the BoE’s Bailey, on a sustained recession risk to the UK economy.
Rishi Sunak is expected to announce extra support in August, to aid households as energy prices soar.
GBPUSD trades down -0.45% following weaker UK GDP figures, near annual lows. The FTSE100 has opened down -2.2%.EUR
EURUSD trades down 0.52% surpassing yearly lows intraday. European equities have slipped roughly -2%.
Germany’s government is increasingly confident that Germany can endure a ban on Russian oil this winter. This would require finding ways to cut consumption and expand production.USD
Wall street saw a decline yesterday on concerns that the Fed will continue its path of aggressive rate hikes. The dollar strengthens on global growth concerns, with the DXY up 0.45%.
Fed members Bullard and Bostic reiterated support for a 0.5% hike in both June and July.
US CPI moderated somewhat at 8.3%, although it didn’t stabilise as much as anticipated.ASIA/PACIFIC
China remains insistent on its zero-covid policies, 30% of GDP comes from areas that are currently locked down. Tough restrictions have been struggling to contain Omicron.
North Korea has reported their first covid outbreak, with all cities being placed into lockdown.ILSUSDILS trades up 0.3% intraday at 3.46.Data & Events
US – Jobless Claims
OPEC market reports
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