Omicron nears peak in the US, Geopolitical tensions in Europe flare as the west looks to Biden for leadership.
January 24, 2022
GBP/USD 1.3534 GBP/EUR 1.1951 EUR/USD 1.1326 USD/CAD 1.2591 EUR/CHF 1.0328 EUR/SEK 10.4213 EUR/NOK 10.1299 EUR/DKK 7.4434 USD/ILS 3.1556 AUD/USD 0.7155 NZD/USD 0.6705 USD/SGD 1.3447 USD/JPY 113.54 USD/CNH 6.3334 USD/INR 74.6600 EUR/ILS 3.5752 GBP/ILS 4.2687 USD/ZAR 15.1790
Political uncertainty continues to add downward pressure to the Pound, as Westminster looks forward to Sue Gray’s ‘Partygate’ Report and whether the incumbent government can survive the fallout. Sterling is little changed this morning after losing 0.4% and 0.6% against the Dollar and Euro on Friday.
Brexit woes continue to rear their head with two major Welsh ports reporting trade volume’s down 30% in 2021 YoY. Brexit risks continue to add uncertainty as investors await today’s PMI data.EUR
The Euro continues to trade just above yearly lows around 1.1320 against the US Dollar, as investors eye todays eurozone PMI releases. Inflationary pressures, the inherent risk of conflict in Ukraine and the concurrent threat to energy supplies continue to put further pressure upon European leaders.
Today focus will gather around the German Services PMI release and how this compares with forecasts.USD
The DXY continues its upward climb, up 0.11% in the intraday range. Labour shortages and soaring wages threaten to play a key role in elevated prices, with a NABE survey reporting that 77% expect high wage costs over the next three months.
Tensions with Russia flare, as US diplomatic families leave Ukraine. Meanwhile the White House is still considering whether to maintain its retrained stance or begin to look at deployments.ASIA/PACIFICThe Hang Seng is down 1.3% at time of writing. The Yen climbed to session highs, up 0.25% on last weeks close, before falling to its current level at 113.75. Progress appears to be made in Evergrande, with prices up 8.15% as restructuring progresses. A few notable data releases today across Asia, with Japan’s PMI, Singapore’s CPI and South Korea’s GDP figures.ILSUSDILS trades up 0.31% at time of writing, reaching a monthly high at 3.1610. The pair has gained 2.33% over the last month.Data & EventsUK - Markit Composite/Services/Manufacturing PMI
Euro Area - Markit Composite/Services/Manufacturing PMI
US - Markit Composite/Services/Manufacturing PMI
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