Inflations figures better than expected in Europe, Year of the Tiger begins.
February 1, 2022
GBP/USD 1.3487 GBP/EUR 1.1980 EUR/USD 1.1258 USD/CAD 1.2659 EUR/CHF 1.0395 EUR/SEK 10.4532 EUR/NOK 9.9780 EUR/DKK 7.4404 USD/ILS 3.1584 AUD/USD 0.7089 NZD/USD 0.6604 USD/SGD 1.3490 USD/JPY 114.81 USD/CNH 6.3668 USD/INR 74.7462 EUR/ILS 3.5557 GBP/ILS 4.2598 USD/ZAR 15.2541
The UK Government have U-turned on mandatory COVID-19 Vaccinations for NHS staff and care workers, avoiding the potential implications of rampant staff shortages. Following the release of Sue Gray’s heavily redacted report, Boris Johnson continues to face scrutiny from all corners of the house, as the update cites negligence from leadership and excessive alcohol consumption.
According to a Nationwide survey, UK House Prices increased by 11.2%n YOY, against expectations of 10.8%. Furthermore, UK manufacturers warned of soaring energy bills that could implicate closures and higher prices, with predictions suggesting manufacturing energy costs may rise by 65% on 2020.
Sterling trades 0.20% higher against the dollar intraday, around the 1.3475 level at time of writing.EUR
France, Spain, and Germany have all reported stronger than expected inflation figures this week, adding further pressure on the ECB to reassess its exit plan from COVID stimulus. Key focus will be on tomorrows Euro Area print and subsequent ECB rate decision on Thursday.
Euro Area GDP ticked slightly below expectations YoY, printing at 4.6% against forecasts of 4.7%. German retail sales failed to meet expectations this morning, printing at 0% for December.
The STOXX 50 climbed throughout yesterday’s session. The Euro trades higher against the Dollar through the Asian session.USD
The US Treasury boosted its prediction for federal borrowing needs from their November estimate, raising expectations by 53% to $730 billion.
Tech stocks fuelled a recovery on the NASDAQ, with a 3.41% rise during yesterday’s session, likewise the S&P500 also rose 1.89%.
The dollar trades lower into the European open, with EURUSD and GBPUSD down 0.28% and 0.20% respectively.ASIA/PACIFIC
A dovish statement from the Royal Bank of Australia has seen traders push back bets of a first rate hike from May to June. The Australian Dollar inched slightly higher against the greenback despite the stance. Japan’s unemployment rate fell to 2.7%.
Shanghai Composite closed 1% lower, whilst the MSCI Asia Pacific saw small gains of 0.24% in yesterday’s session.
A quiet period of parts of Asia as markets close for the Lunar New Year holiday.ILS
USDILS is down 1.3% from the 3.2 level seen last week, currently trading just below 3.16 as we print.
The Israeli breakeven inflation rate for 10-Year CPI-linked bonds fell 2 basis points to 2.6% yesterday.Data & Events
UK – House Price Index
EU – Manufacturing PMI
Germany – Unemployment Rate
US – Manufacturing PMI
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