Biden meets Powell to discuss inflation; Croatia could become Euro-area’s 20th member; No-confidence motions mount against PM.
June 1, 2022
GBP/USD 1.2604 GBP/EUR 1.1752 EUR/USD 1.0723 USD/CAD 1.2649 EUR/CHF 1.0294 EUR/SEK 10.4992 EUR/NOK 10.0437 EUR/DKK 7.4398 USD/ILS 3.3271 AUD/USD 0.7187 NZD/USD 0.6508 USD/SGD 1.3722 USD/JPY 129.36 USD/CNH 6.6973 USD/INR 77.5463 EUR/ILS 3.5677 GBP/ILS 4.1931 USD/ZAR 15.5569
The cost-of-living crisis and increasing mortgage rates may have moderated house prices in the UK. Consensus sees house prices rising 10.5% YoY slowing from April’s 12.1%. Mortgage approvals remain above the pre-pandemic average.
Speculation has begun over the number of no-confidence motions tabled against Boris Johnson. The process within the conservative party is anonymous, with wargaming beginning on the outcome of a possible no-confidence vote.EUR
Croatia will discover whether their economy meets the criteria to become the euro-area’s 20th member. Progress will be assessed in reports due today from the ECB and the EU’s executive arm.
Germany will prioritise its air force as part of a €100 billion defence package. €41 billion is set to be directed at airpower.
EURUSD trades lower by 0.14% as we print.USD
Biden met Powell yesterday, with the president using the meeting to stress the Fed’s independence and their mandate to tame inflation. The white house is assessing measures to mitigate inflation including easing tariffs. Janet Yellen praised the Fed for taking the right steps and admitted that she underestimated inflation risks last year.
The dollar trades higher by 0.16% as we print. US Markets slipped yesterday; with the NASDAQ closing down -0.41%.ASIA/PACIFIC
Australia’s three-year bond yield rose following data showing that the economy expanded faster than forecasted in the first quarter. These figures could bolster the case of the RBA to raise rates further this year.
The Japanese yen has weakened to a 2-week low, slipping past 129 per dollar today. This comes following months of weakening in the Yen as policymakers fail to act to support the depreciating currency.ILS
USDILS trades 0.2% higher intraday. Yesterday saw the pair fall -0.5%.Data & Events
Euro-area Manufacturing PMI
UK Manufacturing PMI
UK House Price Index
US Manufacturing PMI
US ISM Manufacturing
Fed Beige Book
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