July 22, 2022
GBP/USD 1.1931 GBP/EUR 1.1761 EUR/USD 1.0145 USD/CAD 1.2873 EUR/CHF 0.9828 EUR/SEK 10.4100 EUR/NOK 10.1545 EUR/DKK 7.4444 USD/ILS 3.4483 AUD/USD 0.6913 NZD/USD 0.6231 USD/SGD 1.3908 USD/JPY 137.73 USD/CNH 6.7740 USD/INR 79.8850 EUR/ILS 3.4992 GBP/ILS 4.1151 USD/ZAR 17.0246
Sterling dipped back below the 1.2000 level this morning following mixed Retail sales data for June. MoM figures improved, boosted by food sales over the bank holiday weekend, however YoY failed to meet expectations, printing at -5.8%.
Consumer confidence in the UK is now below levels seen during the pandemic and both 80s and 90s recession. Reports this morning show increasing concern for the pound if Liz Truss wins the Conservative leadership race and proceeds with pledges to cut taxes.EUR
The Euro whipsawed throughout yesterday as the ECB raised interest rates by 50bps, the first increase in 11 years and biggest since 2000. Despite surging 1% on the decision, the Euro parred gains as focus shifts to next weeks Fed decision and expectation for a 75bps and subsequent divergence between the central banks.
Services and Manufacturing PMIs for France, Germany and the Euro Area, all failed to beat expectations this morning, reinforcing predictions of a recession in the second half of 2022. The Euro tumbled on the release, losing 0.9% against the Dollar.USD
The Dollar has rallied during the Asian session as risk sentiment shifts ahead of today’s PMI data. The DXY is up 0.17% at time of writing. Stocks waver amid the downbeat mood, with contracts on the Nasdaq slipping 0.6%. Poor results from Snap Inc saw a 27% decline in the stock, amid lessening demand for advertising budgets. Concerns spilled over into similar tech stocks, with Meta and Alphabet losing 5% and 3% respectively.ASIA/PACIFIC
Japan’s CPI rose in line with expectations, with prices excluding food rising 2.2% YoY. USDJPY has reversed some of yesterdays losses following the BoJ decision to leave rates on hold. Australian Manufacturing and Services PMIs fell below previous levels.ILSUSDILS is trading 0.36% higher intraday amid broad dollar strength.Data & EventsJapan - Inflation
UK - Retail Sales
US/UK/Euro Area - Manufacturing and Services PMIs
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