EURUSD is trading 3% lower on last week as the Nord Stream pipeline undergoes annual 10-day maintenance, raising concerns over ongoing energy supplies to the bloc. Yen hits 24 year lows against the Dollar following election victory for Japan's ruling party.
July 11, 2022
GBP/USD 1.1965 GBP/EUR 1.1829 EUR/USD 1.0114 USD/CAD 1.2986 EUR/CHF 0.9906 EUR/SEK 10.7139 EUR/NOK 10.3125 EUR/DKK 7.4414 USD/ILS 3.4817 AUD/USD 0.6807 NZD/USD 0.6168 USD/SGD 1.4014 USD/JPY 136.82 USD/CNH 6.7069 USD/INR 79.4100 EUR/ILS 3.5225 GBP/ILS 4.1633 USD/ZAR 16.9537
New surveys suggest business owners are increasing their prices with the expectation that inflation will remain high for longer than initially anticipated, with the peak not likely until Spring next year. Evidence of consistent price and wage rises is further boosting calls for more “forceful” action from the Bank of England on August 4th.
Several Conservative MPs (including Rishi Sunak, Sajid Javid, Jeremy Hunt and Liz Truss) have launched bids for the party leadership following Boris Johnsons resignation, with some candidates pledging large tax cuts. MPs will begin to choose a shortlist of candidates on Wednesday. After staging a brief recovery back above 1.20000, support for the pound has faded, losing 0.6% against the Dollar this morning.EUR
The Euro declined over 2% against the Dollar last week, reaching a low of 1.0078, as the pair slowly moves closer towards parity. Euro weakness is spurred from growing concern over energy supply, with Germany recording its first trade deficit since 1991, as rising energy imports caused by the ongoing Russia/Ukraine conflict take hold.
The Nord Stream pipeline has begun its annual maintenance today, with flows expected to stop for 10 days. Markets are growing concerned that energy prices may soar further if the shutdown is extended beyond the planned period.USD
The Dollar has gained further traction during the Asian session, with the DXY up 0.5%, as fresh Covid restrictions in China and further tech crackdowns boosted safe-haven demand.
Non-farm payrolls beat expectations of a slowdown on Friday, adding 372,000 jobs for June, as demand for labour remains strong. The unemployment rate remained steady at 3.6%. Treasury yields were boosted as strong jobs data may encourage further aggressive action from the Fed.ASIA/PACIFIC
China has reintroduced Covid restrictions amid a resurgence of cases of the more infectious Omicron variant, with 11 cities now under full or partial lockdown. Restrictions continue to weigh on the economy, with consumer prices rising 2.5% in June.
The Yen declined to 24 year lows against the Dollar following the election victory for Japan’s ruling bloc, as investors sold JPY over the likely continuation of loose monetary policy.ILSUSDILS is trading 1.25% lower on this time last week, around the 3.4850 level at time of writing.
Bank of Israel Governor Amir Yaron has said that he is determined not to let inflation reach levels seen in Europe or the US, aiming to bring it back within its 1-3% target in 2023.Data & EventsItaly - Retail Sales
US - Fed member Williams speaks
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