IMF cuts US growth forecast. UK economy beats expectations. US CPI expected to hit 8.8% later today.
July 13, 2022
GBP/USD 1.1899 GBP/EUR 1.1852 EUR/USD 1.0039 USD/CAD 1.3010 EUR/CHF 0.9824 EUR/SEK 10.6041 EUR/NOK 10.2578 EUR/DKK 7.4417 USD/ILS 3.4691 AUD/USD 0.6785 NZD/USD 0.6139 USD/SGD 1.4052 USD/JPY 137.11 USD/CNH 6.7258 USD/INR 79.63 EUR/ILS 3.4833 GBP/ILS 4.1283 USD/ZAR 16.9715
The UK economy beat expectations through May, expanding 0.5%. Andrew Bailey warned that the BoE is prepared to hike in bigger steps, with investors currently pricing in a 50-bps hike in August.
At time of writing GBPUSD trades just below 1.19, and the FTSE trades 0.6% lower.EUR
The Bank of France has said that the economy grew by 0.25% in the second quarter. Ireland’s coalition government won a confidence vote in parliament following a motion tabled by opposition Sinn Fein.
EURUSD flirted with parity yesterday, before rebounding, it now trades at 1.004USD
The IMF has slashed it US GDP forecast to 2.3% growth from 2.9%, warning that broad-based inflation poses a risk to the US economy. US inflation is expected to rise today to 8.8% YoY, this data could embolden the fed towards a 75 bps hike this month.
North of the border the Bank of Canada is seen to raise rates by 75 bps today in a super-sized rate hike.ASIA/PACIFIC
The RNBZ and the South Korean central bank both raised rates by 50 bps, bringing their key rates to 2.5% and 2.25% respectively.
Sri Lanka has imposed a state of emergency following widespread protests.ILS
USDILS has pushed lower so far today, currently trading at down -0.4%.Data & Events
US June CPI
Bank of Canada Rate Decision
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