G-7 aims to ban Russian Oil; Sinn Fein prompts UK to fix Northern Ireland Protocol.
May 9, 2022
GBP/USD 1.2294 GBP/EUR 1.1688 EUR/USD 1.0519 USD/CAD 1.2931 EUR/CHF 1.0451 EUR/SEK 10.5166 EUR/NOK 10.0464 EUR/DKK 7.4395 USD/ILS 3.4267 AUD/USD 0.7015 NZD/USD 0.6347 USD/SGD 1.3917 USD/JPY 131.19 USD/CNH 6.7663 USD/INR 77.4850 EUR/ILS 3.6046 GBP/ILS 4.2130 USD/ZAR 16.1299
The UK will move quickly to fix the Northern Ireland protocol, the Deputy PM has confirmed following Sinn Fein’s election victory. Raab said that the post-Brexit trade deal threatens stability in the region.
Meanwhile, local elections saw the conservatives lose almost 500 council seats.
GBPUSD trades lower by -0.5% throughout today’s session.EUR
Stagflation risks from the war and supply-chain issues could drive the euro to parity with the dollar for the first time in nearly two decades. This comes from a survey which sees a majority favouring EURUSD falling to 1.00.
ECB members spoke last Friday, with Rehn citing that the ECB should start raising borrowing costs in July to prevent inflation expectations. Holzmann followed by indicating that the ECB should raise rates 2-3 times this year.
EURUSD trades -0.25% lower as we print.USD
The US expanded sanctions, banning American financial services (Accounting and Consulting) from working with Russia. This comes as G-7 leaders plan to ban Russian oil imports.
Federal reserve hawks defended the FOMC against claims that they were behind the curve. Waller and Bullard argued that critics aren’t taking account of tightening that precedes rate hikes.
The Dollar trades higher by 0.4% intraday.ASIA/PACIFIC
China appears to be struggling with employment issues caused by tight covid restrictions seen in Beijing and Shanghai. China’s premier encouraged ministries and regions to help businesses retains jobs and resume production.
In Hong Kong, China selected the sole candidate John Lee as the city’s chief executive.
Filipinos began voting in a presidential election that may see the son and namesake of late dictator Ferdinand Marcos prevail.ILS
USDILS trades higher by 0.5%, continuing last week’s dollar strength against the shekel to trade above 3.42 at time of writing.Data & Events
French Trade Balance
Russia celebrates Victory Day – Putin Speaks
Euro-area investor confidence
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