Truss forced into U-turn over tax cuts, German inflation surges above 10% through September.
October 3, 2022
GBP/USD 1.1202 GBP/EUR 1.1414 EUR/USD 0.9815 USD/CAD 1.3755 EUR/CHF 0.9685 EUR/SEK 10.9004 EUR/NOK 10.6414 EUR/DKK 7.4364 USD/ILS 3.5960 AUD/USD 0.6446 NZD/USD 0.5654 USD/SGD 1.4345 USD/JPY 145.01 USD/CNH 7.1471 USD/INR 81.8300 EUR/ILS 3.5297 GBP/ILS 4.0284 USD/ZAR 18.0563
Liz Truss has been forced into a U-turn over some aspects of her governments mini budget ahead of her party’s conference in Birmingham. They are reversing plans to cut the highest rate of income tax which partly spurred market turmoil last week.
The UK Housing market is expected to be under pressure with surging mortgage rates expected to tip the market over the edge. Expectations currently see the potential for a double-digit fall in house values.EUR
Hungary’s parliament is expected to approve anti-corruption measures to unlock billions of euros in European union funds.
German inflation increased to 10.9% YoY in September, up from 8.8% in August, topping forecasts and setting the tone that inflation may be even less transitory in Europe.USD
Last week’s market turmoil in the UK bolstered the safe-haven strengthening of the dollar, and the 10-year treasury yield. As markets weigh up a deteriorating economic environment expectations of the federal reserves terminal rate have weakened, despite this the Fed could likely remain committed to their current tightening path.ASIA/PACIFIC
North Korea fired two ballistic missiles from international waters, firing seven missiles in total last week.
PMIs for southeast Asia showed improvement in Indonesia, Thailand and the Philippines. However, this was a mixed bag with Japan and Malaysia PMI slipping from prior months.
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