UK economy contracted in 2Q, Biden prepares re-election bid, Italy’s center-right parties reach agreement on a coalition.
August 12, 2022
GBP/USD 1.2181 GBP/EUR 1.1833 EUR/USD 1.0294 USD/CAD 1.2743 EUR/CHF 0.9696 EUR/SEK 10.4092 EUR/NOK 9.7974 EUR/DKK 7.4397 USD/ILS 3.2479 AUD/USD 0.7125 NZD/USD 0.6454 USD/SGD 1.3705 USD/JPY 133.23 USD/CNH 6.7339 USD/INR 79.7000 EUR/ILS 3.3432 GBP/ILS 3.9561 USD/ZAR 16.1855
The UK economy shrank in the second quarter for the first time since the pandemic, GDP slipped 0.1%, beating expectations for a greater contraction.
Liz Truss ruled out a fresh windfall tax on energy companies should she become PM, while Rishi Sunak pledged another £10 billion to help consumers cover energy costs.EUR
Italy’s center-right parties have reached an agreement on a coalition, potentially ending what has been weeks of political turmoil following Draghi’s resignation.
EURUSD trades down 0.25%, edging below the 1.03 level, European equities have opened higher with he Stoxx trading up 0.35% as we print.USD
Joe Biden is supposedly preparing a re-election bid according to aides and allies, bolstered by policy victories.
Mary Daly has reiterated her case of a 50-bps Fed rate hike increase; however, she does have an open mind about another large rate hike, with swap markets currently pricing in 0.6% of tightening.ASIA/PACIFIC
China may be ready to curb some of the excess liquidity sloshing around in the banking system. Consensus see the PBOC offering less cash than that maturing this month.
The Malaysian economy grew 8.9% YoY in the second quarter, beating estimates. Indian inflation may have eased to 6.8% in July from 7% in June.ILS
USDILS trades 0.16% lower at 3.24, continuing a prolonged period of shekel strength against the dollar, as USDILS has slipped from highs seen in early July.Data & Events
Euro-area June Industrial Production
University of Michigan Sentiment
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