The Dollar gains as US GDP exceeds expectations, Macron due to speak with Putin in a bid to de-escalate tensions. UK National Insurance hike causes division in cabinet.
January 28, 2022
GBP/USD 1.3368 GBP/EUR 1.2013 EUR/USD 1.1128 USD/CAD 1.2774 EUR/CHF 1.0363 EUR/SEK 10.5152 EUR/NOK 10.0051 EUR/DKK 7.4432 USD/ILS 3.1975 AUD/USD 0.70035 NZD/USD 0.65575 USD/SGD 1.3571 USD/JPY 115.54 USD/CNH 6.3686 USD/INR 75.01 EUR/ILS 3.5582 GBP/ILS 4.2746 USD/ZAR 15.5166
Sue Gray’s fact-finding report is being held up due to concerns it will impact the ongoing Metropolitan police investigation. The report is set to be stripped of detail after a request by the police.
The planned National Insurance tax hike in April is becoming a divisive issue within the cabinet. Although ministers understand the requirement to claw back money spent during the pandemic, there are concerns that the 2.5% hike combined with inflationary pressures could stretch household budgets.
Sterling made early gains against the euro, with EURGBP trading at 0.832, -0.1% intraday. Meanwhile the FTSE100 closed up 1% over yesterday’s session.EUR
Emmanuel Macron is set to hold talks with Vladimir Putin today, aiming to lead the European attempt to de-escalate the ongoing crisis in Ukraine.
The Spanish economy grey 2% in Q4 as its recovery from the pandemic continues.
EURUSD is trading down 0.1% at time of writing, extending yesterday’s decline to trade at the lowest level since June 2020. Meanwhile the STOXX and DAX had a weak open down -0.57% and -0.95% in the last hour.USD
The treasury curve has flattened significantly on remarks from the Fed’s Jerome Powell on Wednesday. Markets are now considering the possibility of the Fed braking hard if inflation gets away from target levels. The Dollar Index hit an 18month high yesterday, as investors digested the comments and 4th Quarter GDP smashed expectations to print at 6.9% (forecast 5.5%).
Small gains made by US Indexes yesterday, with the NASDAQ up 0.77% and the S&P500 up 0.34%.ASIA/PACIFIC
Australia has pledged A$1 Billion in funding to protect the great barrier reef as the government looks to reposition its climate policy ahead of its May election.
Japanese consumer price growth slowed to 0.2% in January. South Korean factory output rose 4.3% from the previous month driven by semiconductor and automotive production.
Positive day for Asian equity markets, with the MSCI up 0.78% and the ASX up 2.15%.ILS
Covid-19 vaccinations has saved 20,000 lives in Israel public health experts announce.
USDILS trades 0.5% higher on yesterday’s open, amid broad Dollar strength. The pair continues to trade within the 3.1850 - 3.2000 range this morning.Data & Events
US – Personal Income
US – Personal Spending
EU – Several EU Q4 GDP (France, Germany, Sweden, Spain)
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