Sino-US relations tested by potential Pelosi visit; Asian equities and European futures dip on geopolitical concerns; RBA hikes key rate by 50-bps.
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FX Rates
August 2, 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 1.2208 GBP/EUR 1.1926 EUR/USD 1.0237 USD/CAD 1.2874 EUR/CHF 0.9742 EUR/SEK 10.4101 EUR/NOK 9.9298 EUR/DKK 7.4449 USD/ILS 3.3802 AUD/USD 0.6934 NZD/USD 0.6289 USD/SGD 1.3803 USD/JPY 130.78 USD/CNH 6.7754 USD/INR 78.5775 EUR/ILS 3.4601 GBP/ILS 4.1263 USD/ZAR 16.5268
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GBP
Liz Truss has vowed to target inefficiencies in the UK Civil Service should she become PM, her campaign claims this could save £11 billion a year. Truss also gained the backing of former candidate Penny Mordaunt. Sunak vowed to take 4p of income tax and implement “No-Show” fines for NHS appointments.
GBPUSD trades down 0.2%, following jitters from US-China relations. UK House prices rose 11% YoY in July, missing the estimates 11.4%.
EUREuropean futures were lower through Tuesday, with the DAX and Stoxx50 futures trading 0.7% lower following geopolitical tensions between the US and China. Lingering concerns over an economic recession continue to dampen investors mood, exacerbated by the ongoing energy crisis. The EUR trades -0.15% lower against the dollar.
USDThe US seeks to keep Beijing calm ahead of Nancy Pelosi’s visit to Taiwan, insisting that the trip doesn’t signal a change in its policy. China has promised “Serious Consequences” should the trip go ahead injecting uncertainty into Asian stocks and European futures. Meanwhile, the US announced the death of Al-Qaeda leader, Ayman al-Zawahiri in a drone strike. He was found in Kabul, with Blinken stating that the Taliban had violated peace agreements by hosting Zawahiri in the capital.
US job openings could dip as sentiment weakens. However, the labour market is expected to remain tight.
ASIA/PACIFICThe RBA hiked its key rate by 50-bps for a third consecutive time, bringing the rate to 1.85%, with markets currently pricing in a year-end rate of roughly 3%. Australian shares inched higher following the RBA decision, closing at its highest level in over seven weeks.
ILSUSDILS inches lower by -0.1% at 3.37
Data & EventsSpain July Unemployment
OPEC+ Technical Committee meet.
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