Sterling trades lower as Nicola Sturgeon announces her plans for a second Scottish Independence vote. The Dollar climbs as recessionary concerns grow. US Consumer confidence prints at 16-month lows.
June 29, 2022
GBP/USD 1.2200 GBP/EUR 1.1606 EUR/USD 1.0511 USD/CAD 1.2863 EUR/CHF 1.0048 EUR/SEK 10.6757 EUR/NOK 10.3034 EUR/DKK 7.4393 USD/ILS 3.4452 AUD/USD 0.6890 NZD/USD 0.6241 USD/SGD 1.3884 USD/JPY 136.11 USD/CNH 6.7060 USD/INR 78.9625 EUR/ILS 3.6217 GBP/ILS 4.2008 USD/ZAR 16.1142
The pound has come under further pressure over the course of the morning as issues facing the UK are continuing to pile up. Along with Brexit woes and the ongoing cost of living crisis, Nicola Sturgeon announced her plans last night for a second Scottish Independence vote next year.
UK shop-price inflation surged 3.1% in June, with higher food prices gaining 5.6%, the biggest climb in over 10 years. According to reports, around 7million households did not have essentials like heating last month.EUR
A chief ECB economist has said that he believes Europe will soon enter a period of stagflation, with 2024 inflation higher than the 2.1% forecast by the central bank. ECB member Simkus has this morning said that a 50bps hike in September could be “very likely” if data worsens.
Euro bonds and the single currency declined this morning as German CPI printed at -0.1% in June, signalling the current peak might have passed. Moves were partially reversed as Spanish Inflation surged to a record 10%.USD
The Dollar gained the most in over a week, climbing 0.5% overnight as a fall in equities boosted the safe-haven. Concerns over global economic growth heightened, with investors seemingly skeptical that central banks can avoid recession. US consumer confidence printed at 16-month lows yesterday, as hot inflation continues to dampen the outlook.ASIA/PACIFIC
China have halved the quarantine time for inbound travelers and close contacts, however created a new mass testing and lock down policy, confirming their Covid zero stance. Stocks dropped on negative sentiment, with the Asia Pacific index dropping 1.3%, ending a four-day climb.ILSThe shekel weakened further against the Dollar yesterday, losing 1.35% on the week so far as volatility spikes on recessionary concerns. The pair trades just below 3.4500 at time of writing.Data & EventsECB Central Banking Forum
Lagarde/Powell/Bailey all speak
Euro Area - Consumer Confidence
Industrial and Economic Sentiment
US - GDP
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