Fed seen continuing with aggressive tightening off robust labour data, ECB injects €17 billion into Mediterranean debt markets, Ceasefire ends three-day conflict in Gaza.
August 8, 2022
GBP/USD 1.2120 GBP/EUR 1.1870 EUR/USD 1.0211 USD/CAD 1.2893 EUR/CHF 0.9773 EUR/SEK 10.3822 EUR/NOK 9.9489 EUR/DKK 7.4403 USD/ILS 3.3318 AUD/USD 0.6970 NZD/USD 0.6269 USD/SGD 1.3785 USD/JPY 135.00 USD/CNH 6.7624 USD/INR 79.5425 EUR/ILS 3.4021 GBP/ILS 4.0380 USD/ZAR 16.6776
The telegraph has stated that Liz Truss might ask the BoE to abandon its 2% inflation target in favour of boosting economic growth. UK GDP is expected to shrink -0.2% in 2Q.
GBPUSD trades 25-bps higher as we print, following slight dollar weakness globally.EUR
European bonds have been their most turbulent on record, with the yield on Germany’s benchmark bond oscillating by 10-bps on almost 80-days this year.
Italy’s sovereign rating outlook has been lowered to negative by Moody’s amid political turmoil, following Draghi’s exit.
The ECB has injected €17 billion into Italian, Spanish and Greek debt markets.USD
Swap markets see the Fed continuing with large rate hikes through September, with 69-bps currently priced in for the September meeting. This echo’s calls from some FOMC members that tightening should continue until inflation subsides sharply and will be emboldened by last week’s robust labour data.
The senate passed the Democrats landmark tax, climate and healthcare bill, clearing the path for Joe Biden’s agenda to become law. The GOP warn that the bill could deepen a looming recession.
Donald Trump led the field in the latest 2024 presidential straw poll.ASIA/PACIFIC
China’s CPI could soon surpass 3% the CICC has said, advancing past the government target. Hong Kong has shortened it hotel quarantine requirement for visitors to three days.
Japan has said two Chinese ships entered its waters near the disputed Senkaku Islands.ILS
USDILS has slipped -0.6% through Monday morning. A ceasefire has come into effect in Gaza, following three days of conflict in the region.Data & Events
Euro-Area Sentix Investor Confidence
Greece July CPI
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