EU warn China of Global harm if it aids Russia; Oil continued to fall following US reserve release; Ukraine-Russia talks are set to resume today.
April 1, 2022
GBP/USD 1.3121 GBP/EUR 1.1855 EUR/USD 1.1068 USD/CAD 1.2507 EUR/CHF 1.0224 EUR/SEK 10.3725 EUR/NOK 9.6965 EUR/DKK 7.4386 USD/ILS 3.2027 AUD/USD 0.7507 NZD/USD 0.6932 USD/SGD 1.3565 USD/JPY 122.67 USD/CNH 6.3634 USD/INR 75.7888 EUR/ILS 3.5446 GBP/ILS 4.2021 USD/ZAR 14.5702
UK business confidence fell to a 17-month low since Russia invaded Ukraine - many firms are putting investment on hold. Businesses are preparing to weather 6% inflation by year-end.
The UK is concerned that its allies, are too eager to secure an early Ukraine peace deal. The foreign office’s position is that an agreement should only be reached when Ukraine is in its strongest position.
The FTSE100 has started the day positive, following yesterday’s poor performance across European equities.EUR
Euro-area headline inflation is expected to reach the highest since the inception of the euro, primarily driven by a spike in energy prices. Consensus is for it to accelerate to 6.7%. The market will be watching to see if inflation exceeds the consensus.
The EUR trades down against the dollar by -0.1% and up against the pound by 0.1%.USD
Oil prices continued to slip yesterday following the US announcement that it’s releasing its oil reserves, the large swings in energy physicals have prompted energy suppliers to act cautiously when expanding output.
Consensus is that the US may have added 490,000 jobs in March, sending unemployment rates down to 3.7%. This could come as good news, as yesterday’s PCE deflator rose, but its rate of growth is lower on previous months.
The DXY trades up 0.15%.ASIA/PACIFIC
Asia’s manufacturing resurgence has slowed in March, following sharp downturns in PMIs. China was also impacted by Covid outbreaks. Japan, Indonesia, and the Philippines posted a manufacturing improvement.
China has been warned about the impact to its global standing should it offer aid to Russia.
USDJPY trades up 0.73% as we print.ILS
Intraday, USDILS had an attempted rally, currently trading above 3.2. The pair broke a monthly downturn in yesterday’s session. USDILS trades up 0.4% intraday.Data & Events
Euro-area March CPI
Manufacturing PMI’s – US, UK, EU, FR, DE, IT.
US – Jobs report
ECB’s Schnabel and Knot speak.
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