Sterling trades lower as new forecasts suggest the UK will be the worst performing G7 economy this year. Emmanuel Macron and Marine Le Pen go head-to-head in TV debate tonight ahead of Sundays final election round.
April 20, 2022
GBP/USD 1.3018 GBP/EUR 1.2031 EUR/USD 1.0820 USD/CAD 1.2571 EUR/CHF 1.0271 EUR/SEK 10.2595 EUR/NOK 9.5057 EUR/DKK 7.4399 USD/ILS 3.2329 AUD/USD 0.7422 NZD/USD 0.6777 USD/SGD 1.3666 USD/JPY 128.65 USD/CNH 6.4387 USD/INR 76.4550 EUR/ILS 3.4988 GBP/ILS 4.2067 USD/ZAR 15.0583
The pound declined yesterday, falling behind its G10 peers as Boris Johnson’s ‘partygate’ scandal and economic concerns became the key focus for traders. According to new IMF forecasts, the UK will be the worst performing G7 economy over the next year, as tax increases and the cost-of-living crisis are expected to slow activity.
Johnson repeatedly apologized to Parliament last night, over his involvement in parties during the Covid lockdown. Parliament will decide on whether the Commons committee should investigate whether the PM misled parliament, which is a resigning offence under government rules in a vote on Thursday.EUR
Emmanuel Macron leads Le Pen 55%-45% according to this morning’s voting intentions poll, ahead of tonight’s face-to-face TV debate and Sunday’s final round of presidential elections. The Euro has recovered slightly this morning after losing 0.35% yesterday, EURUSD trades just above the 1.0800 level at time of writing. European stocks gained, with the Stoxx 50 up 0.4%.USD
US index futures declined, and the dollar slipped as traders digest 10-year real yields turning positive for the first time since March 2020. Nasdaq and S&P contracts fell after the biggest monthly gain on Tuesday, as results from Netflix dampened the earnings-season outlook. Netflix declined 25% in after-hours trading. The DXY is little changed this morning after losing 0.4% during the Asian session.ASIA/PACIFIC
Scientists have raised concerns over the efficacy of China’s homegrown Covid vaccines in tackling the Omicron variant. The country is facing the biggest surge in cases since the start of the pandemic, whilst only 57% of over 60s have received the booster jab.
Chinese stocks declined as the PBOC held lending rates, disappointing the market which anticipated a cut to support current lockdown measures. Oil rebounded as industrial activity in China picked up.ILS
The shekel is little changed against the Dollar, trading around 3.2350 at time of writing.Data & EventsEU - Balance of Trade
US - MBA Mortgage Applications
Existing Home Sales
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