Sterling trades higher as unemployment data and average earnings beat forecasts. The DXY loses some steam as positive Covid headlines from China boost sentiment.
May 17, 2022
GBP/USD 1.2408 GBP/EUR 1.1866 EUR/USD 1.0457 USD/CAD 1.2828 EUR/CHF 1.0450 EUR/SEK 10.4427 EUR/NOK 10.1346 EUR/DKK 7.4416 USD/ILS 3.3717 AUD/USD 0.7011 NZD/USD 0.6343 USD/SGD 1.3878 USD/JPY 129.26 USD/CNH 6.7613 USD/INR 77.6150 EUR/ILS 3.5247 GBP/ILS 4.1798 USD/ZAR 16.0792
The UK will lay out its plan to amend post-Brexit trade. The government plan to introduce laws that would override the Northern Ireland protocol, should no progress be made over talks. The EU has stated it could suspend the entire agreement if the UK changes the protocol.
Sterling trades higher this morning following improved jobs data. The UK economy added far more jobs than expected, whilst unemployment data and average earnings both beat forecasts. GBPUSD is up 0.65% to trade at 1.2400, whilst GBPEUR gained 0.3% to trade in the mid 1.1800s at time of writing.EUR
EU ambassadors are to hold more talks on the proposed Russian oil ban, an issue which has been particularly divisive. Macron names Elisabeth Borne as France’s second female PM.
EURUSD is enjoying some reprieve after the pair gained 0.3% during the Asian session. Expectations for an ECB rate hike are creeping higher, improved sentiment and downbeat US data caused a softer dollar. The pair trades in the mid 1.0400 as we print.USD
The Senate voted to approve a $40 billion Ukraine aid package, which could become law as early as tomorrow.
US retail sales is anticipated to rise 1% in April, with industrial output climbing marginally. The balance between softer demand and supply chain bottlenecks will factor into how quickly goods-price inflation subsidies.ASIA/PACIFIC
Asian stocks rose, fuelled by optimism that Beijing may ease up on a yearlong clampdown on tech. Shanghai reported no new covid infections for a third day, authorities stated this was an important milestone before unwinding lockdown measures.
The RBNZ could hike rates by 0.5% at each of its next three meetings to get on top of inflation.ILSUSDILS is trading lower on improved market sentiment, linked to Chinese covid headlines. The pair is down 0.87% on the week so far, trading at 3.3740 as we write.Data & Events
France – Unemployment Rate
UK – employment data
US – Retail Sales
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