PM could face no-confidence vote as early as today; Biden looks at tariffs to ease inflation impacts on US households; ECB expected to end bond buying scheme this week.
June 6, 2022
GBP/USD 1.2526 GBP/EUR 1.1675 EUR/USD 1.0729 USD/CAD 1.2572 EUR/CHF 1.0321 EUR/SEK 10.4631 EUR/NOK 10.1001 EUR/DKK 7.4389 USD/ILS 3.3341 AUD/USD 0.7209 NZD/USD 0.6514 USD/SGD 1.3741 USD/JPY 130.65 USD/CNH 6.6565 USD/INR 77.6725 EUR/ILS 3.5770 GBP/ILS 4.1762 USD/ZAR 15.4236
The Prime Minister could be expecting a no-confidence vote soon, as tory MPs rebel. It is generally thought that he would survive a no-confidence contest. The contest could take place as early as this evening.
UK business secretary is considering a support package for manufacturers to aid with rising production costs.
GBPUSD trades higher 0.29%, the FTSE 100 has opened 1.04% higher intraday.EUR
This week is likely to see the ECB begin tightening, whilst rate hikes aren’t expected until July, the ECB may be set to end bond purchases at Thursday’s meeting.
Consumer spending remains high across Europe, with record inflation failing to spoil spending sentiment. Data suggests a rebound in services spending could be enough to offset weaker manufacturing performance since the war.USD
The Biden administration is looking at potentially easing Trump-era tariffs on China to help tame the impact of inflation on American households. Some tariffs will likely remain to protect workers and business’ in key industries such as steel.
This week sees another CPI Print, consensus sees headline inflation holding at 8.3%, whilst core-inflation slows to 5.9% from 6.2%.ASIA/PACIFIC
Australian shares have fell ahead of tomorrows RBA meeting. Consensus is mixed over the RBA’s next action, most expect a 0.25% hike however some anticipate a 0.4% hike.
China’s Caixin services PMI gained to 41.4 in May, missing estimates and remaining deep in contractionary territory.ILS
USDILS slipped lower today, falling below 3.33 levels to 3.328, down 0.15%.
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