UK brings forward plan to cut UK debt, Germany’s fiscal policy threatens to increase economic division, Aussie dollar slipped following dovish rate hike from RBA.
October 4, 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
Chancellor of the UK announced at party conference that he will bring forward the announcement of his plan to reduce UK debt, following the market turmoil triggered two weeks ago on the announcement of his ‘mini-budget’. Markets judged the plan as fiscally irresponsible which forced the bank of England to intervene as UK long-dated gilt yields surged.
A few senior party members, including cabinet members of Boris Johnsons government are absent from the Birmingham conference.EUR
Germany’s plan to issue a large borrowing program in order to shelter firms and households from surging energy prices has got other European nations worried about division across the bloc. Scholz’s €200 billion plan places a ‘large protective umbrella’ over Europe’s largest economy.
Spain’s ruling coalition has finally reached a deal on the 2023 budget after weeks of negotiations.USD
New York fed chief hinted that the Federal Reserve is yet to hike interest rates to levels that are restricting economic growth, and that tightening still has ‘significant’ ways to go.
US factory orders are expected to remain flat in August, following a 1% dip in July.ASIA/PACIFIC
The Aussie dollar slipped following the RBA’s decision to hike interest rates by a smaller jump than anticipated. The RBA hiked rates by 0.25% less than the consensus of 0.5%. Australian stocks gained at the dovish surprise.
Tokyo’s core inflation rose to 2.8% in September, from 2.6% in august.ILS
Israeli markets are shut today for Yom Kippur. USDILS trades -0.55% lower intraday following yesterday’s dollar sell off.Data & Events
ECB’s Centero and Lagarde speak
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