PM entrenches into Downing Street amid louder calls for his resignation, EU debate Moscow sanctions
February 7, 2022
GBP/USD 1.3535 GBP/EUR 1.1834 EUR/USD 1.1437 USD/CAD 1.2731 EUR/CHF 1.0586 EUR/SEK 10.4690 EUR/NOK 10.0697 EUR/DKK 7.4442 USD/ILS 3.2010 AUD/USD 0.70965 NZD/USD 0.6627 USD/SGD 1.3447 USD/JPY 115.125 USD/CNH 6.3619 USD/INR 74.7012 EUR/ILS 3.6610 GBP/ILS 4.3328 USD/ZAR 15.469
Johnson has begun a No10 reshuffle to buy time and appease increasingly angry conservative backbenchers. The government's plan to help with soaring energy prices has come under fire, after a £200 pound loan to help cover bills coincides with tax hikes. Furthermore, rising costs of living are pushing more people towards food insecurity.
The FTSE100 performed above its eurozone counterparts on what was a poor day for European equities, down -0.17% prior to the London open.EUR
EU leaders debate how to impose ‘painful’ sanctions on Russia and its allies. Meanwhile, the EU must find alternative energy suppliers should relations deteriorate with Moscow.
Warning off a correction, as investors are pricing in more interest rates hike than policy makers have been indicating. This is especially relevant off the back of the ECB’s hawkish posturing.
Eurozone stock indices finished down on Friday. The STOXX 600 and DAX finished the week down -1.33% and -1.75%. European equities are expected to show some upside in the early hours of the European session, aligning with the rally in US equities on Friday – the futures market supports this outlook.USD
A quiet morning for US markets, the Dollar marginally strengthens as we print, with the DXY up 0.07%. On Friday, US markets traded flat with the Dow Jones, NASDAQ and S&P500 struggling to gather momentum.
The US trade balance is reported tomorrow, with the trade deficit expected to widen. We look forward to a week full of crucial data releases, including CPI YoY and Jobless Claims which are key to the Fed’s tightening mandate.ASIA/PACIFIC
Asian markets are set to catch up on worldwide equity markets following a shutdown for the lunar new year.
Chinese inflation is set to cool this year, amid worldwide monetary tightening and easing supply chains.
The CSI is up 1.54% at time of writing, the Hang Seng trades flat, and the Nikkei is down -0.7%ILS
Netanyahu trial continues, amid allegations of police spying.
USDILS trades above the 3.2 level as we print. The pair has bounced up above the 3.2 level several times throughout the Asian session. The pair is up 2.14% since a month ago, in which time its range has been with a support level around 3.1 and resistance at 3.2.Data & Events
DE- Industrial Production
FR – Sells Bills
ECB – Lagarde speaks
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