FOMC could slow pace of tightening, Strikes threaten to add to consumer shortages in UK.
August 18, 2022
GBP/USD 1.2036 GBP/EUR 1.1837 EUR/USD 1.0168 USD/CAD 1.2924 EUR/CHF 0.9693 EUR/SEK 10.5968 EUR/NOK 9.8725 EUR/DKK 7.4388 USD/ILS 3.2505 AUD/USD 0.6925 NZD/USD 0.6260 USD/SGD 1.3834 USD/JPY 135.26 USD/CNH 6.8061 USD/INR 79.6713 EUR/ILS 3.3049 GBP/ILS 3.9121 USD/ZAR 16.7316
Train services across the UK will be halted amid continuing union action across the railways. This week’s strikes and a strike starting Sunday at Felixstowe (UK’s biggest container port) could create more consumer shortages.
Government borrowing next year is set to be £23 billion higher than forecasted, even before the next PM brings through funding to help struggling consumers and businesses.EUR
ECB research has shown that Euro-area households have managed to keep pandemic-era savings. This could serve as a buffer against rising prices and stagflation.
Norges bank is expected to lift its key policy rate by 50-bps to 1.75%, taking borrowing costs to its highest in over a decade.USD
The FOMC agreed on the potential need to slow the pace of tightening to avoid unnecessary economic damage. The Fed will attempt to achieve the correct balance by monitoring the effect of tightening so far. US jobless claims are expected to creep higher to 264,000.
The US and Taiwan have started formal negotiations on a bilateral trade initiative, this will likely flare Sino-US relations.ASIA/PACIFIC
Asian stocks fell on global concerns of China’s growth outlook. Investment from the EU in China gained 15% in the first half of 2022.
Australian employment unexpectedly tumbled by 40,9000 in July, while the jobless rate fell to 3.4%.ILS
USDILS trades 0.1% higher at 3.25. Despite a large USDILS peak around 3.5 through June/July, USDILS now trades only marginally higher from this time last year.Data & Events
Euro-Area July CPI
US Initial Jobless Claims
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