Spanish inflation eases, Pound climbs following two days of decline, Chinese unrest eases amid heavy police presence.
November 29, 2022
GBP/USD 1.2034 GBP/EUR 1.1595 EUR/USD 1.0379 USD/CAD 1.3428 EUR/CHF 0.9850 EUR/SEK 10.9070 EUR/NOK 10.3325 EUR/DKK 7.4370 USD/ILS 3.4375 AUD/USD 0.6731 NZD/USD 0.6236 USD/SGD 1.3721 USD/JPY 138.22 USD/CNH 7.1848 USD/INR 81.6925 EUR/ILS 3.5676 GBP/ILS 4.1366 USD/ZAR 17.0069
The pound is climbing after two days of decline trading around $1.20. UK market sentiment will be tested today as the Bank of England sells bonds it acquired during the market turmoil spurred by Liz Truss’ government. The bond auctions are beginning today and will be sold in a “demand-led” way designed to avoid any market destabilisation.
Yesterday saw the UK National grid warn that it may need to use special measures and pay households not to use high power consuming appliances. UK power prices surged following a sudden decline in wind output. The National Grid did not have to implement the tool after the UK’s energy supply improvedEUR
Spanish inflation appeared to ease through November. CPI fell to 6.8% from 7.3% the month prior. This print was significantly lower than the market consensus which saw inflation advancing to 7.4%. The slowdown was driven by declines in electricity and fuel costs. Europe’s largest economy, Germany will also release its CPI data later today. Year-on-Year CPI is expected to remain unchanged at 10.4%.USD
Federal Reserve policymakers stressed on Monday that they will raise borrowing costs further to curb inflation, with one key official saying that he sees interest rates heading somewhat higher than he had forecast. New York Fed President, John Williams, said that robust labour demand and higher underlying inflation suggest a modestly higher policy path.ASIA/PACIFIC
The South Korean won, and offshore yuan led most emerging currencies higher on the back of a softer dollar as China’s covid protest eased. Protests against China’s stringent covid regime failed to take place Monday night, as authorities deployed a heavy police presence in the capital and other major cities. Through November Asian currencies are set for their steepest monthly advance in more than six years.ILS
Israeli lawmaker Gafni, has proposed a freeze on mortgage rates, especially for the purchase of first homes by middle and low income households. USDILS trades slightly below yesterday close.Data & Events
UK Mortgage Approvals
Italy Oct. PPI
Germany Nov CPI
BoE Bailey testifies
Trading in financial instruments may involve a high degree of risk and may not be suitable for all investors. Trading in financial instruments can result in both loss and profit. Investors should carefully consider whether financial instruments suit their needs, financial resources and personal circumstances.
The information contained in this material is solely for informational purposes only and it is not and should not be construed as an offer or a solicitation of an offer to buy or sell any financial instruments and cannot be relied upon as a representation that any particular transaction necessarily could have been or can be effected at the stated prices. This material does not contrue advice.
For more analysis on FX markets or information regarding SVB's FX services:
0800 023 1440 from within the UK
+44 207 367 7880 from overseas
See all of SVB's latest FX information and commentary.
© 2023 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB).
Silicon Valley Bank is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. FC029579. Silicon Valley Bank is authorised and regulated by the California Department of Business Oversight and the United States Federal Reserve Bank; authorised by the Prudential Regulation Authority with number 577295; and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. Silicon Valley Bank is a subsidiary of SVB Financial Group, a Delaware corporation and is an affiliate of SVB Financial Group UK Limited. SVB Financial Group UK Ltd is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. 5572575 and is authorised and regulated by the Financial Conduct Authority, with reference number 446159. SVB Financial Group and its subsidiary Silicon Valley Bank are members of the Federal Reserve System and Silicon Valley Bank is a member of the FDIC.
Your eligible deposits with Silicon Valley Bank UK are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered. Please click here for further information or visit http://www.fscs.org.uk. For more detailed information about coverage and limits, please review our FSCS Information Sheet at http://www.fscs.org.uk.
This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. Opinions expressed are our opinions as of the date of this content only. The material is based upon information which we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.