Powell vows to keep raising rates; Concern of cost-push inflation due to weakening pound.
June 23, 2022
GBP/USD 1.2177 GBP/EUR 1.1590 EUR/USD 1.0507 USD/CAD 1.2977 EUR/CHF 1.0157 EUR/SEK 10.6941 EUR/NOK 10.4786 EUR/DKK 7.4387 USD/ILS 3.4575 AUD/USD 0.6879 NZD/USD 0.6255 USD/SGD 1.3909 USD/JPY 135.52 USD/CNH 6.7099 USD/INR 78.3575 EUR/ILS 3.6326 GBP/ILS 4.2100 USD/ZAR 15.9816
UK composite PMI is seen sliding to 52.4 from 53.1, due to the additional bank holiday to celebrate the queen’s jubilee.
Some senior MPs raised the alarm over sterling weakness, stating that it could exacerbate the cost-of-living crisis. They are worried about cost-push inflation on imports impacting businesses and consumers.EUR
The Euro-Area’s composite PMI is expected to dip to 54 in June, with services shown falling to 55.5. This has yet to be pushed into contractionary territory despite the war in Ukraine.
Emmanuel Macron acknowledged in his first public address since the weekend's elections that he’ll have to negotiate with rivals. He will have to diligently navigate a political arena that has become increasingly polarised, potentially holding talk's with Marine Le Pen.USD
Jerome Powell vowed to keep raising rates until there was ‘compelling evidence' of falling inflation, he told congress on Wednesday. The fed’s target rate is expected to rise above 3% this year, in order to soften demand and cool price increases.
Philadelphia fed chief has said that QT means rates won’t have to 'accelerate rapidly' past 3%.ASIA/PACIFIC
The Philippines raised its key rate by 25 bps to 2.5%. Indonesia held rates at 3.5%. Singapore’s inflation accelerated to 5.6% in May from 5.4% in April, driven by rising costs of imported food and fuel.ILS
USDILS trades 0.53% higher intraday, trading around 3.46.Data & Events
ECB economic bulletin
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