Euro-area CPI expected to advance as fears over EU energy supply worsen. Tech giants cutting spending highlights recession fears; Tory leadership race whittled down to final four.
July 19, 2022
GBP/USD 1.1997 GBP/EUR 1.1748 EUR/USD 1.0213 USD/CAD 1.2948 EUR/CHF 0.9921 EUR/SEK 10.5169 EUR/NOK 10.2148 EUR/DKK 7.4442 USD/ILS 3.4478 AUD/USD 0.6872 NZD/USD 0.6207 USD/SGD 1.3925 USD/JPY 137.82 USD/CNH 6.7512 USD/INR 79.8988 EUR/ILS 3.5211 GBP/ILS 4.1364 USD/ZAR 17.0491
The race to become the next PM continues with only four candidates remaining. No candidate has yet secured a place in the final two, with Rishi Sunak and Penny Mordaunt the top two candidates.
UK Chancellor Nadhim Zahawi will pledge an ‘agile’ approach to financial regulation will commit to repealing legacy EU membership.
GBPUSD trades 0.26% higher, the FTSE100 has opened -0.4% lower.EUR
The EU is set to ask member states to immediately cut gas usage. Against a backdrop, of using the Nord stream 1 pipeline as a geopolitical football, the EU is concerned about meeting winter demand. Hot weather could disrupt coal shipments as the Rhine is at its shallowest in 15 years.
European equites have slipped as tech giants plan to cut back spending, highlighting recession fears. The euro trades 0.71% higher against the dollar, as the ECB are set to discuss a 50-bps hike. Euro-zone CPI prints later today, consensus is that CPI accelerates to 8.6%, up from 8.1% prior.USD
The senate hope to pass a $52 billion bill for the US semiconductor manufacturing today. US Housing starts are seen rising 2% in June, despite dropping 14.4% in May.
Some banks expect the Fed to struggle in their fight against inflation, as consumers continue to spend despite a worsening economic climate.ASIA/PACIFIC
BOJ officials see some potential upside of sustainable inflation in the Japanese economy and believe the current global inflationary environment could need encouragement rather than elimination.
China’s holdings of treasuries fell for the sixth straight month in May, falling to a 12-year low.ILS
USDILS trades -0.21% lower. Likud remains clear favourite in the polls to be the largest party, however, the groups of smaller parties meeting the threshold to enter the Knesset could play a significant role in the outcome of the November election.Data & Events
Euro-Area June CPI
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