UK economic growth fastest since 1940, warning of rapid escalation in Ukraine.
February 11, 2022
GBP/USD 1.3565 GBP/EUR 1.1913 EUR/USD 1.1387 USD/CAD 1.2727 EUR/CHF 1.05636 EUR/SEK 10.6036 EUR/NOK 10.0742 EUR/DKK 7.4402 USD/ILS 3.2354 AUD/USD 0.7132 NZD/USD 0.6653 USD/SGD 1.3447 USD/JPY 116.02 USD/CNH 6.3608 USD/INR 75.3062 EUR/ILS 3.6842 GBP/ILS 4.3887 USD/ZAR 15.0945
The UK economy grew by 7.5% over 2021, with omicron failing to significantly impact growth through December. Foreign secretary Liz Truss aims to kickoff fresh negotiations with the EU over the Irish border, with the hope of avoiding a trade war. This comes after a very muted dialogue with the Russian foreign secretary which achieved little.
The FTSE 100 closed +0.38% yesterday and the pound traded weaker against the dollar with GBPUSD down -0.35%. Meanwhile, EURGBP trades up 0.17%, after a day in which the FTSE outperformed against European markets.EUR
The ECB’s Lagarde warned that the ECB would harm eurozone recovery if it rushed to tighten monetary policy. The ECB has been repositioning itself after the market misinterpreted the hawkish tone struck last week.
A mixed day yesterday for European equities, the STOXX 600 fell -0.21% and the DAX traded level. EURUSD traded down -0.44% as we print.USD
The US ran a budget surplus in January, the first time in 3 years, driven by the wind down of pandemic relief payments.
The sentiment of Canadian border protests may spread into the US, with the potential for truck drivers to protest during this Sunday’s Super bowl. US households are spending an extra $276 per month due to rising prices.
The NASDAQ and S&P500 fell yesterday by -0.8% and -0.7% respectively, meanwhile the DXY trades up 0.36% as we print.ASIA/PACIFIC
The Royal Bank of Australia has stated its intention to tolerate higher inflation than targeted following a prolonged weakness in consumer prices.
China has issued regulation to ease funding pressure on property developers. The move aims to standardize the use of pre-sale funds for housing projects. India’s industrial production likely grew to 1.6% YoY in December.
Presently, the NIKKEI trades up 0.42% and the Hang Seng trades down -0.29%.ILS
Throughout the week, USDILS has continued to push higher up 1.04% from Monday, currently trading at 3.235 at time of writing.
Pegasus, the spyware cyberweapon, has become embroiled in controversy. The number of targeted public servants has grown to 26, with all allegedly being targeted without court warrants.Data & Events
DE – Jan. CPI
UK – Dec Industrial Production
UK – Dec Trade Balance
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