Pound falls below 1.15 ahead of new PM announcement, Euro forecasts slashed as energy crisis worsens, Lockdown’s continue to hinder Chinese growth.
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FX Rates
September 5, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
Source: BloombergGBP/USD 1.1477 GBP/EUR 1.1571 EUR/USD 0.9919 USD/CAD 1.3167 EUR/CHF 0.9747 EUR/SEK 10.7600 EUR/NOK 9.9667 EUR/DKK 7.4368 USD/ILS 3.4048 AUD/USD 0.6777 NZD/USD 0.6086 USD/SGD 1.4057 USD/JPY 140.54 USD/CNH 6.9494 USD/INR 79.8875 EUR/ILS 3.3771 GBP/ILS 3.9076 USD/ZAR 17.3213
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GBP
Today will mark the end of the UK’s political paralysis in No. 10, with the next Prime Minister to be named today. Liz Truss is widely expected to win the contest despite her policies coming under much criticism for fiscal irresponsibility. The pound dropped below 1.15 against the dollar ahead of the announcement.
The FTSE250 is underperforming considerably against the FTSE 100. The consumer orientated nature of much of the FTSE250 has seen businesses struggle amid the cost-of-living crisis. The FTSE100 has been boosted by the energy and mining sectors.
EURFollowing Friday’s announcement that the Nord Stream pipeline will remain shut, both European equities and the euro slipped. The outlook for Europe over the winter looks worse than before, as energy rationing begins to look inevitable. Governments across the bloc have been rushing to provide financial aid for the energy industry and consumers. Forecasts on the euro have been slashed, with some seeing EURUSD trending below the 0.99 mark.
USDUS markets are closed today for the US Labour Day holiday.
Biden’s administration is considering policy that would restrict US investment in Chinese tech firms as tensions grow, following the Taiwan visit by House speaker Pelosi.
The dollar has reached fresh 20-year highs with the index reaching above 110, as the worsening energy crisis bolsters the safe-haven dollar.
ASIA/PACIFICComposite PMIs in Asia generally slipped through August. The Caixin gauge in China fell to 53 from 54, whilst Japan entered contractionary territory. India’s trade deficit narrowed to $28.6 billion last month as falling commodities prices eased import costs.
The lockdown in Chengdu has been extended with Shenzhen also falling under restrictions. China reported 1,552 cases today.
ILSIsrael’s intelligence agency chief will travel to the US to stress dangers posed by the Iran nuclear deal.
USDILS trades 0.6% higher intraday, breaking just above 3.4 and near monthly highs.
Data & EventsUK announces new PM
OPEC+ Meeting
Euro-Area Composite PMIs
UK Composite PMI
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