April 22, 2022
GBP/USD 1.2865 GBP/EUR 1.1908 EUR/USD 1.0803 USD/CAD 1.2680 EUR/CHF 1.0321 EUR/SEK 10.2934 EUR/NOK 9.6675 EUR/DKK 7.4404 USD/ILS 3.2593 AUD/USD 0.7299 NZD/USD 0.6668 USD/SGD 1.3667 USD/JPY 128.47 USD/CNH 6.5330 USD/INR 76.48 EUR/ILS 3.5236 GBP/ILS 4.1941 USD/ZAR 15.5725
The pound has hit its lowest level since November 2020, when the UK was in a coronavirus lockdown, as a number of reports released this morning suggested that the economic recovery is starting to slow. Retail sales tumbled, falling 1.4% month on month.
As consumers face a cost-of-living crisis due to surging energy bills, higher taxes and the strongest inflation in decades, attention will turn to the government’s ability to support UK households and the Bank of England’s approach to bring inflation back to its 2% target level.EUR
The euro opened the morning on the backfoot as France and Germany reported PMIs below consensus estimates. Continued pressure remains on the shared currency as uncertainty surrounding the outcome of the French Elections weighs on sentiment.
On the equity market, the Stoxx 50 currently trades in negative territory while EURUSD tests support at the 1.08 handle.USD
The dollar rallied and treasuries declined yesterday, after Jerome Powell commented that the Fed are likely to raise rates by 0.5% in May. He also confirmed that the central bank will start quantitative tightening. The DXY is trading 0.4% higher this morning, the highest level since July 2020, with losses from the Pound contributing to the rally. EURUSD is down 0.3% whilst cable has lost 1.2% on the European open to trade below 1.2900 at time of writing.
Nasdaq and S&P futures closed the day flat after a volatile day of trading. More than 80% of released earnings reports on the S&P have beaten estimates, supporting claims of a broad based recovery.ASIA/PACIFIC
Manufacturing and services PMI gauges in Japan confirmed each sector recorded an expansion for the month of April, narrowly printing above the key 50 level. On the equity front, the Nikkei shed over 1.5% overnight and the yen trades flat against the dollar.Elsewhere, equities broadly closed lower while the dollar grinded higher against counterparts in the region, in-line with wider market sentimentILSUSDILS trades 0.5% higher this morning amid broad Dollar strength. The pair is up 1.6% higher on the week.Data & EventsUK - Manufacturing/Services/Composite PMI
US - Manufacturing/Services/Composite PMI
Euro Area - Manufacturing/Services/Composite PMI
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