Euro and Sterling weaker against dollar, US industrial data shows decline, Chinese banks inflate loan volumes, Bank of Israel hikes by largest move in 20 years
August 23, 2022
GBP/USD 1.1761 GBP/EUR 1.1845 EUR/USD 0.9929 USD/CAD 0.9929 1.3016 EUR/CHF 0.9585 EUR/SEK 10.6286 EUR/NOK 9.7371 EUR/DKK 7.4373 USD/ILS 3.2771 AUD/USD 0.6883 NZD/USD 0.6185 USD/SGD 1.3965 USD/JPY 137.26 USD/CNH 6.8759 USD/INR 79.8613 EUR/ILS 3.2538 GBP/ILS 3.8542 USD/ZAR 16.9979
Liz Truss is preparing an emergency spending package to help Briton cope with surging energy costs. Truss remains the frontrunner in the leadership race. There has been significant criticism of the party, with both candidates accused of ignoring immediate threats posed to the UK.
GBPUSD trades below 1.18, seeing a half a percent fall this week so far,EUR
Eurozone composite PMI survey for August could highlight the mounting challenges faced by European businesses. The headline reading could drop to 49 from 49.9 in July. Some forecasts for the euro see the single currency slipping to 0.97 as concerns over energy and inflation mount.
EURUSD trades below parity overnight trading closer to 0.99 following today’s -0.1% movement.USD
US manufacturing PMI is expected to slow to 51.8 from 52.2 the previous month, whilst the Richmond Fed’s August factory index is seen slipping to -4 from 0. These could be early signs of declining industrial activity as price pressures bed in.
Last Friday’s large options expiration has fueled volatility seen across markets this week.ASIA/PACIFIC
There are reports the Chinese banks are inflating loan volumes, loaning to each other, and allowing creditors to deposit funds at the same interest rate, to meet government demands. Meanwhile, some economists forecast that the PBOC could cut its main interest rate by 50-bps if Covid continues to dampen economic sentiment.ILS
USDILS trades -0.2% lower. Yesterday the Bank of Israel rose rats by 75-bps to 2%. The largest rate hike in 20 years to cool inflation.Data & Events
US Manufacturing PMI
US New Home Sales
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