Hawkish Fed comments push US equity futures lower, Macron to present controversial pension overhaul.
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FX Rates
January 10, 2023Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
Source: BloombergGBP/USD 1.2171 GBP/EUR 1.1331 EUR/USD 1.0741 USD/CAD 1.3384 EUR/CHF 0.9884 EUR/SEK 11.1397 EUR/NOK 10.6528 EUR/DKK 7.4378 USD/ILS 3.4760 AUD/USD 0.6906 NZD/USD 0.6382 USD/SGD 1.3311 USD/JPY 131.99 USD/CNH 6.7865 USD/INR 81.8575 EUR/ILS 3.7334 GBP/ILS 4.2304 USD/ZAR 16.9704
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GBP
UK job recruiters said demand for permanent staff slipped for a third month in December, contracting at the sharpest pace since the Pandemic. Meanwhile, the British Retail Consortium have published retails sales for December, which shows total sales up 6.9% year-over-year.
EUREmmanuel Macron’s government is set to present his plan to overhaul France’s pension system on Tuesday. This may trigger mass strikes and protests which may further undermine an economy already at risk of recession. The Government has insisted that the plans are needed to boost low senior employment rates and to avoid deficits in a public system supported by worker contributions.
Some economists no longer predict a euro-zone recession after the economy proved more resilient at the end of 2022, and the pressure from energy prices has subsided.
USDUS equity futures edged lower through the morning as investors reacted to hawkish comments from FOMC officials. Mary Daly said that she expects the central bank to raise rates to somewhere over 5%. Furthermore, Raphael Bostic sees rates above 5% early in the second quarter. There is further uncertainty as markets await Thursday’s US inflation report, which will be one of the last readings policymakers see before their Jan-31 meeting.
ASIA/PACIFICChinese policymakers appear poised to set a more supportive fiscal stance in 2023. The aim is to enable the economy to reap the benefits of the covid reopening, and looser property regulations to drive economic recovery.
ILSUSDILS trades notably lower from yesterday, around 3.47, having slipped from 3.5 during yesterday.Data & EventsFed’s Powell discusses central bank independence
BoE’s Bailey speaks
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