Markets reassess rate hike estimates. “Party-gate" report due today; Support for EU oil ban wains.
May 25, 2022
GBP/USD 1.2544 GBP/EUR 1.1737 EUR/USD 1.0688 USD/CAD 1.2826 EUR/CHF 1.0286 EUR/SEK 10.4996 EUR/NOK 10.2486 EUR/DKK 7.4396 USD/ILS 3.3487 AUD/USD 0.7108 NZD/USD 0.6503 USD/SGD 1.3746 USD/JPY 127.08 USD/CNH 6.6808 USD/INR 77.5213 EUR/ILS 3.5789 GBP/ILS 4.2004 USD/ZAR 15.6879
The long-awaited “Party-gate” report is due to be released today, with the PM set to address Tory MPs shortly after. Energy stocks fell yesterday as reports suggest The Chancellor will introduce a windfall tax on the industry.
Rishi Sunak is set to announce a multi-billion-pound aid package to help Britons with living costs.EUR
The EU will propose new laws that allow member states to seize criminal power, and potentially those of sanctioned Russian individuals. Meanwhile, following comments from Ursula von der Leyen it appears the political willpower behind the Russian oil ban is fading. Viktor Orban, Hungarian PM, urged leaders not to discuss the ban.
EURUSD trades lower by 0.35% as we print.USD
Money-markets lowered estimates for US rate hikes, following weaker home sales and Richmond fed data. They now see 135 bps of hikes over the next three meetings, down from 141 bps on Monday. Raphael Bostic urged his Fed Colleagues to raise rates with care.
US durable goods orders are expected to rise 0.6% in April, slowing from March’s 1.1% advance.ASIA/PACIFIC
The RNBZ raised rates by 0.5% for a second consecutive meeting.
The yuan has seen its biggest weekly gain in two years over the last week, it is now beginning to fade. Some suggest any potential slide will be tempered by PBOC intervention.ILSUSDILS trades higher by 0.1%, with no significant moves from yesterday’s range.Data & Events
France Consumer Confidence
German GfK consumer confidence, 1Q GDP
Spain April PPI
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