Sunak set to officially become PM today, Washington keen to restart dialogue with Beijing, Euro-area PMIs reinforces case for aggressive ECB.
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FX Rates
October 25, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
Source: BloombergGBP/USD 1.1303 GBP/EUR 1.1461 EUR/USD 0.9863 USD/CAD 1.3714 EUR/CHF 0.9882 EUR/SEK 10.9936 EUR/NOK 10.3911 EUR/DKK 7.4383 USD/ILS 3.5507 AUD/USD 0.6325 NZD/USD 0.5705 USD/SGD 1.4245 USD/JPY 148.92 USD/CNH 7.3353 USD/INR 82.7700 EUR/ILS 3.5018 GBP/ILS 4.0133 USD/ZAR 18.4792
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GBP
Rishi Sunak is set to be formally announced as Prime Minister later today. He was the only challenger at the meeting yesterday, following Penny Mordaunt’s withdrawal. In efforts to instil fiscal stability Jeremy Hunt is expected to remain as chancellor, with his statement expected to go ahead in a weeks’ time.
Following yesterday’s news of Sunak’s ascendency, gilts rallied, pushing the 10-year yield to the lowest in almost three-weeks, a sign that market confidence could be restored under a Sunak premiership. The rally in GBPUSD has been somewhat muted, following PMI data that considerably missed expectations.
EUREuro-area flash PMIs for October highlighted a further downturn in business activity as inflation and economic uncertainty weigh on output. This likely reinforces the case for an aggressive ECB agenda despite some concern on the impact of raising borrowing costs too far. The EU’s largest economy, Germany, saw weakness across the board as business reported growing reluctance among clients and consumers.
USDBiden’s team are expected to be working on setting up a meeting with Xi Jinping and restoring dialogue with Beijing after months of flared tensions. Tensions have been high since Nancy Pelosi’s visit to Taiwan, and the US bill that restricts the export of chips and semiconductors to the Chinese mainland. Now the Xi has tightened his grip on power, Washington is keen to restart dialogue.
ASIA/PACIFICSingapore’s CPI stabilised in September, which may only be a temporary respite from steady price increases. Inflation remained steady at 7.5% in September. The MAS sees headline inflation of 6% this year, and roughly the same through 2023.
Australia’s budget deficit is forecast to be less than half the level anticipated due to surging commodity crisis.
ILSUSDILS trades slightly lower intraday. Meanwhile, the Israeli government has completed building the “landing zone”, part of a project to deploy scale cloud services across the nation.
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