July 20, 2022
GBP/USD 1.2002 GBP/EUR 1.1733 EUR/USD 1.0229 USD/CAD 1.2872 EUR/CHF 0.99188 EUR/SEK 10.4680 EUR/NOK 10.1499 EUR/DKK 7.4441 USD/ILS 3.4368 AUD/USD 0.6905 NZD/USD 0.6242 USD/SGD 1.3935 USD/JPY 138.17 USD/CNH 6.7589 USD/INR 79.9750 EUR/ILS 3.5159 GBP/ILS 4.1222 USD/ZAR 17.1280
UK inflation has hit a new 40 year high in June, printing at 9.4%, further intensifying the cost of living crisis. The surge was driven by the acceleration of fuel prices in particular, with the sector rising 9.3%. Core consumer prices however, excluding food and energy items, eased to 5.8% in June from 5.9% the previous month. GBPUSD bounced marginally off 2-week highs following the release to trade just above 1.2000 handle as we print.
BoE Governor Andrew Bailey has confirmed that MPC members are considering a 50bp rate hike in August, in a bid to tackle inflation. He continued to defend the Central Bank’s mandate, in response to recent criticism from Conservative party leadership candidates.EUR
The Euro continued its recent surge, gaining 1.75% against the USD on the week so far, as money markets see almost a 50% chance of a half point hike in tomorrow’s ECB meeting.
Annual maintenance to the Nord Stream pipeline is due to come to an end tomorrow, however Putin has warned that flow may be reduced, unless currently sanctioned parts are returned to Russia. The pipeline may work at just 20% of capacity if his warnings come into fruition.USD
The US Dollar has declined for a fourth consecutive day, as risk on sentiment continues to rise. The DXY trades 1.5% down on the week so far to reach two week lows. Stocks extended gains, with the S&P 500 and Nasdaq both adding over 2.5%. A rally in technology shares led the way, with Astory Co, the producers of new South Korean drama Netflix show surging 82%.ASIA/PACIFIC
Sri Lanka have picked the ally of their ouster leader as President, sparking concerns of further protests.
Stocks have continued to climb in the Asian session, with the MSCI Asia Pacific Index up 1.5%. The Tech heavy Hang Seng climbed 1.5%, whilst the Nikkei closed 2.67% higher.
RBA Governor Philip Lowe has said that interest rates may need to double to tackle the ongoing inflationary pressure.ILSDollar weakness has pushed the USDILS pair 0.9% lower over the course of the week, trading at 3.4350 as we print.Data & EventsUK - CPI
EU - Consumer Confidence Flash
US - MBA Mortgage Applications
Existing Home Sales
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