Sterling continues to climb as GDP reaches pre-pandemic levels for the first time. Global stocks decline as Fed officials suggest rate rises may be needed as early as March.
January 14, 2022
GBP/USD 1.3735 GBP/EUR 1.1979 EUR/USD 1.1465 USD/CAD 1.2481 EUR/CHF 1.0432 EUR/SEK 10.2494 EUR/NOK 9.9477 EUR/DKK 7.4409 USD/ILS 3.1096 AUD/USD 0.7275 NZD/USD 0.6856 USD/SGD 1.3453 USD/JPY 113.84 USD/CNH 6.3525 USD/INR 74.18 EUR/ILS 3.5640 GBP/ILS 4.2700 USD/ZAR 15.3263
The pound has continued to climb, up 0.23% against the Dollar this morning, set to end the week on its longest winning streak since November. The rally was supported by stronger than expected GDP, with the UK economy surpassing its pre-pandemic size in November for the first time, with a reading of 0.9%. Despite the rise, economists expect output to lose momentum from December as Omicron cases surged.EUR
EURUSD is trading 1.1% higher on the week, with the Euro benefitting from broad Dollar weakness. The pair reached the highest level since November yesterday, around 1.1475.
France has lifted its restrictions on vaccinated travelers from the UK, after the ban failed to limit the spread of Omicron across the country. Travelers coming from the UK will still be required to show a negative Covid test result within 24 hours of departure, however will not need to quarantine.USD
The Dollar was little changed yesterday, after investors reacted to producer inflation data from the US. PPI ticked lower for December to 9.7%. Initial jobless claims rose to the highest level in 8-weeks for the first week of January as Omicron cases surge. The Nasdaq fell to its lowest level since October, declining 2.5%, after a number of Federal Reserve members suggested that they will look to raise rates as early as March to bring inflationary pressures under control. The S&P 500 also fell 1.4%.ASIA/PACIFIC
USDCNY is trading down 0.3%, to the lowest level since May 2018. Comments from Fed officials yesterday spurred the decline, with Asian shares also following suit. The Nikkei and Topix are both down 1.3% during the Asian session, whilst the Hang Seng lost 0.2%.ILS
USDILS is little changed on the week, trading around the 3.1100 level.Data & Events
UK – GDP
Industrial and Manufacturing Production
Germany – GDP
US – Retail Sales
Michigan Consumer Sentiment
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