UK Government in turmoil following minister resignations; Fed determine to prevent prices becoming entrenched.
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FX Rates
July 7, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
Source: BloombergGBP/USD 1.1938 GBP/EUR 1.1722 EUR/USD 1.0184 USD/CAD 1.3015 EUR/CHF 0.9890 EUR/SEK 10.7416 EUR/NOK 10.3048 EUR/DKK 7.4410 USD/ILS 3.4953 AUD/USD 0.6811 NZD/USD 0.6170 USD/SGD 1.4021 USD/JPY 136.07 USD/CNH 6.7091 USD/INR 79.1363 EUR/ILS 3.5594 GBP/ILS 4.1725 USD/ZAR 16.8099
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GBP
At time of writing, 53 government members have now resigned from Boris Johnson’s government, putting the prime minister in a precarious position. The internal conservative 1922 committee is said to be preparing a rule change to oust the prime minister after his narrow victory in last months no-confidence vote.
UK markets are shaking off the political meltdown, sterling trades up 0.22% against the dollar, and the FTSE has opened higher.
EURGermany is planning cuts to unemployment support through 2023. Ireland’s Central Bank has raised its 2022 inflation forecast to 7.8% from 6.5%, citing rising energy prices.
The ECB is set to publish its June minutes today, with investors ready to analyse the rhetoric around the September rate hike, which is currently priced at 47 bps.
USDLast months FOMC minutes highlighted the Fed’s determination to continue hiking rates to prevent soaring prices from becoming entrenched, regardless of the impacts this could have on growth. Swap markets are currently pricing in a 0.71% rate hike at next months meeting.
Consensus sees Jobless claims at 230k and the May trade deficit narrowing to $84.7 billion.
ASIA/PACIFICA potential disparity between China’s official GDP figures and high frequency indicators could question the accuracy of Beijing’s data. China is expected to report 2Q growth of 1.5%, however indicators suggest the economy could have contracted.
Sri Lanka raised its benchmark rate a percentage point to 15.5%, rates have risen 8.5% since the beginning of the year.
ILSUSDILS trades 0.3% higher as we print, trading just below 3.5.
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