UK GDP meets expectations to grow 0.8% in Q1. Euro weakness continues, with the single currency reaching parity against the Swiss Franc, as French and German inflation bolster calls for bigger rate hikes. Global stocks decline as recessionary concerns grow.
June 30, 2022
GBP/USD 1.2155 GBP/EUR 1.1645 EUR/USD 1.0437 USD/CAD 1.2910 EUR/CHF 0.9971 EUR/SEK 10.6766 EUR/NOK 10.3545 EUR/DKK 7.4391 USD/ILS 3.4809 AUD/USD 0.6887 NZD/USD 0.6228 USD/SGD 1.3908 USD/JPY 136.17 USD/CNH 6.6969 USD/INR 78.9425 EUR/ILS 3.6337 GBP/ILS 4.2300 USD/ZAR 16.2454
UK house prices rose 0.3% in June, less than the 0.5% forecast. The slowest print since September comes after a series of interest rate hikes in the UK, reducing the affordability of mortgages. Disposable incomes dropped 0.2% in Q1, the fourth straight quarter of declines.
Sterling has retraced some losses this morning, despite trading 1.2% lower on the week so far. GDP grew 0.8% in Q1, leaving output above pre-pandemic levels and performing better than the majority of G7 nations.EUR
Euro weakness continued, with the single currency set for its biggest quarterly loss since 2016, as the Euro area fear index hit the highest levels since 2017. EURCHF is trading below parity for the third time since the Euro was established in 1999. The Stoxx 600 dropped 1.6% amid ongoing recessionary concerns.
French inflation climbed to record highs of 6.5% in June, further bolstering calls for officials to hike rates beyond 25bps. Speaking yesterday, Christine Lagarde raised concerns that the pre-pandemic low-inflation environment, may never return.USD
US consumer spending was revised sharply lower for the first quarter, the softest print since the pandemic recovery. US GDP was also revised lower, highlighting that the economy may be on shakier ground than initially anticipated. S&P and Nasdaq futures both fell over 1%, as traders bet on the global economy buckling under aggressive central bank policy.
Jerome Powell reconfirmed the Feds intentions to raise rates “expeditiously” in coming meetings, and cited that he believes the US economy is in a strong position to avoid recession.ASIA/PACIFIC
The Australian Dollar and Chinese Yuan gained, as Chinese Manufacturing PMI rose above 50 for the first time since February.
MSCI Asia Pacific fell for a second day and is set to end its fourth consecutive quarter in the red.ILS
Israeli lawmakers have dissolved parliament following the collapse of their coalition government. The new election date is set for November 1st, with current PM Naftali Bennett confirming yesterday that he will not run for re-election.
USDILS trades 0.5% higher this morning above the 3.4800 level at time of writing.Data & EventsEuro Area - Unemployment
Christine Lagarde speaks
UK - GDP
US - PCE Price Index
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