UK Consumer Confidence falls to record lows, Dollar strengthens plunging cable close to 1.19, Japan’s inflation accelerates past BOJs 2% target.
August 19, 2022
GBP/USD 1.1917 GBP/EUR 1.1817 EUR/USD 1.0085 USD/CAD 1.2972 EUR/CHF 0.9662 EUR/SEK 10.6079 EUR/NOK 9.8393 EUR/DKK 7.4383 USD/ILS 3.2570 AUD/USD 0.6912 NZD/USD 0.6238 USD/SGD 1.3868 USD/JPY 136.31 USD/CNH 6.8187 USD/INR 79.7500 EUR/ILS 3.2845 GBP/ILS 3.8812 USD/ZAR 16.9296
UK Consumer Confidence has fell to record lows as recession concerns mount, and inflation stresses household spending. The gauge fell 3 points to -44, the lowest since records began in 1974. Retail sales might reinforce this angst, with July’s reading seen dipping 0.2% month on month. A survey by Lloyds saw that ten industrial sectors have seen a decline in demand.
GBPUSD fell 1.1% yesterday, as all indicators could suggest that ‘stagflation’ is embedding into the UK economy.EUR
European industrial manufacturers could relocate due to the impacts of energy inflation being more significant in Europe than other global manufacturing hubs. Some suggest a sustained period of high energy costs could force a ‘gradual deindustrialisation’ of the German economy.
EURUSD fell by roughly one percentage point, following stronger economic data emanating from the USUSD
Several FOMC members refuted ideas that the Fed could end its tightening cycle earlier than expected. The rationale to raise rates remains strong however, there is a debate beginning over the pace of rate hikes between the Fed’s Doves and Hawks.
Jobless claims were recorded better than consensus, whilst the Philadelphia Fed Business Outlook far exceeded expectations at 6.2, strengthening the dollar by over 1%.
A $2 trillion options volatility could add to volatility through Friday, with almost $1 trillion set to expire on S&P500 related contracts.ASIA/PACIFIC
Japan’s inflation accelerated past the BOJs 2% target through July. Consumer prices rose 2.4% from a year ago, matching the consensus and is also the strongest reading since 2008.ILS
USDILS trades 0.22% higher intraday, failing to find any momentum in the last three days.Data & Events
UK Retail Sales
Germany July PPI
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