Euro-area PMI’s expected to remain in contractionary territory, Oil prices slip on China’s Covid wave, Fed minutes could show weakening of FOMC unity.
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FX Rates
November 23, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
Source: BloombergGBP/USD 1.1890 GBP/EUR 1.1519 EUR/USD 1.0322 USD/CAD 1.3374 EUR/CHF 0.9823 EUR/SEK 10.9670 EUR/NOK 10.3909 EUR/DKK 7.4368 USD/ILS 3.4590 AUD/USD 0.6655 NZD/USD 0.6183 USD/SGD 1.3831 USD/JPY 141.28 USD/CNH 7.1615 USD/INR 81.8264 EUR/ILS 3.5704 GBP/ILS 4.1128 USD/ZAR 17.2319
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GBP
With the energy crisis taking its toll, the UK budget deficit and current account deficit are both forecasted to exceed 5% of GDP. The government may take some relief over the state of public finances as the deteriorations is significantly down to the acute energy crisis, which should prove to be a temporary strain on expenditure.
EURThe euro-area composite PMI survey is likely to provide more insight into the depth of the economic downturn being brought on by the surge in energy prices. The headline reading declined for the sixth consecutive month in October, coming in at 47.3. That print suggests the economy was already contracting at the start of Q4.
USDFederal reserves are increasingly uncertain about the outlook for the US economy, despite this the FOMC share similar views on inflation, and that further tightening is required. Disagreement may arise as the tightening conditions impact on the US economy, hence causing policymakers to bifurcate. The Fed minutes released later today, will be scoured to understand if the FOMC’s unity is starting to crack.
ASIA/PACIFICNews emanating from China that Covid is resurgent across the country, has heavily weighed on oil prices. As expectations of weaker economic activity lessen the forecasts of Oil demand. Subsequently oil prices have fallen $8 in the last 10 days.
The RBNZ believes it will need to push the economy into recession to quell inflation. It signalled further aggressive tightening in 2023 after delivering a jumbo hike Wednesday.
ILSIsrael’s average inflation forecast for the next 12 months was 2.9% according to the Bank of Israel survey. USDILS trades 0.2% lower intraday.
Data & EventsEuro-Area PMIs
UK Nov PMIs
US Initial Jobless Claims
Fed Minutes
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