Hunt sets out to reassure UK markets which breathe slight relief Monday morning, Biden dismissed economic risks of a strong dollar, Xi offers China as alternative to west.
October 17, 2022
GBP/USD 1.1263 GBP/EUR 1.1554 EUR/USD 0.9750 USD/CAD 1.3817 EUR/CHF 0.9751 EUR/SEK 10.9984 EUR/NOK 10.3637 EUR/DKK 7.4384 USD/ILS 3.5475 AUD/USD 0.6247 NZD/USD 0.5599 USD/SGD 1.4270 USD/JPY 148.62 USD/CNH 7.2090 USD/INR 82.4100 EUR/ILS 3.4587 GBP/ILS 3.9956 USD/ZAR 18.1917
The UK’s new chancellor, Jeremy Hunt, will accelerate plans to bring forward a reversal of the mini-budget set-out by ex-chancellor Kwasi Kwarteng, who was dismissed by Liz Truss last Friday following weeks of turmoil. Hunt is set to speak twice throughout Monday in a bid to reassure markets. The words from the chancellor are radically different from those of Truss outlining that taxes would have to rise and spending would have to be cut. The pound rallied through early trading on Monday, trading 0.65% higher as we print, UK gilts surged at the open with the 10-year yield dropping 16bps to 4.18%.
There have been rumours over the weekend, of significant discontent among some of Liz Truss’ backbenchers over her fiscal credibility.EUR
ECB council member Olli Rehn has said that he’s see financial stability risks in international markets ‘clearly increasing’. He stressed that markets cannot breathe a sigh of relief, and that tighter financial conditions can be felt, and the risk of stagflation has increased.
The ECB is set to propose a dynamic pricing cap mechanism to curb price volatility on its biggest gas marketplace. The measure will impose price limits for transactions on the Dutch Title Transfer Facility.USD
James Bullard, who has notoriously been on the hawkish leaning side of the FOMC has left open the possibility of a 75-bps hike in both November and December, culminating in 1.5% of tightening before the new year.
Joe Biden dismissed the risks of a strong dollar and instead blamed anaemic growth and policy missteps globally for the deteriorating economic climate.ASIA/PACIFIC
Xi Jinping kicked off the party congress with a two-hour speech promising the rejuvenation of the Chinese nation, and forcefully offered China as an alternative partner to the west. He stated that “Chinese international influence, appeal and power to shape the world has significantly increased.” Xi also reiterated that economic development was the party’s top priority.ILS
The shekel is the only major currency to appreciate against the dollar in the last 10 years. USDILS trades -0.3% lower intraday.Data & Events
Several ECB speakers
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