Sterling and Euro extend gains, UK Wages grow at fastest pace in over a year, ECB’s Villeroy encouraged by slowing inflation in US.
November 15, 2022
GBP/USD 1.1829 GBP/EUR 1.1379 EUR/USD 1.0396 USD/CAD 1.3275 EUR/CHF 0.9776 EUR/SEK 10.7933 EUR/NOK 10.3543 EUR/DKK 7.4385 USD/ILS 3.4348 AUD/USD 0.6743 NZD/USD 0.6143 USD/SGD 1.3681 USD/JPY 139.43 USD/CNH 7.0352 USD/INR 81.1713 EUR/ILS 3.5707 GBP/ILS 4.0629 USD/ZAR 17.2404
UK wages grew at the fastest pace in more than a year through the third quarter, adding to inflationary pressures that continue to worry policymakers at the Bank of England. Average weekly earnings rose 5.7% from a year ago, the most since August 2021. The figures underline the case for the central bank to keep raising interest rates.
Jeremy Hunt is expected to be planning tax hikes and spending cuts raising a little over £50 billion. This is expected to be enough to get debt falling in the medium term. Hunt’s austere plans may amount to just 1/3 of the consolidation under George Osborne back in 2010.
GBPUSD extends gain above 1.18, trading 0.7% higher intraday.EUR
ECB Council member Villeroy has stated that signs of inflation peaking in the US are a relief for policy makers around the world who have been raising interest rates at a record pace to combat price pressures. Villeroy said this was a positive sign in the global battle against soaring inflation.
The Euro has gained 0.8% intraday as we print.USD
Soaring mortgage rates are increasingly discouraging Americans from moving in the current year, with only 14.4% saying they are likely to change their primary residence.
US PPI is expected to slow to 8.3% this year, adding to last week’s CPI which showed that the Fed’s high rate environment is beginning to weigh on inflation.ASIA/PACIFIC
Joe Biden and Xi Jinping met in Bali at the G20 meeting. Biden told China its Taiwan policy was aggressive, with several contentious issues being raised during the three-hour meeting. It is hoped that some form of climate cooperation could return between the US and China.
Japan’s economy unexpectedly contracted at an annualised pace of 1.2% in the third quarter, slipping into reverse for the first time since last year.ILS
Israel’s trade deficit widened to $3.793 Bn in October according to the Central Bureau of Statistics.Data & Events
Eurozone 3Q GDP
G-20 Summit continues.
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