GBPUSD falls through yearly lows as retail sales fell at sharpest pace, Bank of France slashes economic growth forecasts, Yield curve inversion reaches most inverted level in 40 years.
September 16, 2022
GBP/USD 1.1372 GBP/EUR 1.1420 EUR/USD 0.9958 USD/CAD 1.3280 EUR/CHF 0.9603 EUR/SEK 10.7386 EUR/NOK 10.2218 EUR/DKK 7.4368 USD/ILS 3.4463 AUD/USD 0.6680 NZD/USD 0.5954 USD/SGD 1.4107 USD/JPY 143.43 USD/CNH 7.0307 USD/INR 79.8288 EUR/ILS 3.4316 GBP/ILS 3.9187 USD/ZAR 17.6582
UK retail sales fell at the sharpest pace in eight months in August as consumers cut back. The number of good sold dropped 1.6% from July, with all retail categories seeing sales decline for the first time since July 2021. Following the release the pound fell, with GBPUSD trading down -0.80% intraday, falling below 1.14.EUR
The EU’s plan for a windfall tax on energy companies risks duplicating the exiting policies in some member nations. Despite intervention from Brussels many forecast that the Euro-area still faces a recession later this year.
France’s central bank has slashed next years economic growth forecasts and raised its inflation outlook. The Bank of France issued a range of forecasts for GDP spanning from a -0.5% contraction to 0.8% growth. Eurozone CPI is due today, it is expected to print steady at 9.1% YoY.USD
Markets now see the Fed’s benchmark rate climbing to 4.3% far exceeding previous expectations of 3% earlier in the year. The increasingly hawkish Fed and higher policy path expectations have underpinned much of the dollar strength seen this year as the Fed paves the way for central banks globally in the fight to curb inflation. The dollar spot index has climbed roughly 15% through 2022.
Yield curve inversion between US 2 and 10-year treasury yields has reached its most inverted level in 40 years.ASIA/PACIFIC
RBA chief has said the case for outsize interest rates have ‘diminished’, with the central bank torn between a 25-bps or 50-bps hike.
Chinese industrial production accelerated to 4.2%, beating estimated. Retail sales rose 5.4% from a year ago.ILS
Israel’s consumer prices moderated, falling 0.3% MoM. Year-over-year prices have slipped to 4.6% versus 5.2% in July
USDILS trades just below 3.45 as we printed, supported by slight strength in the dollar this morning.Data & Events
NATO meet in Tallinn.
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