UK house prices fall at sharpest pace in 14 years, Euro-area economy expands faster than anticipated, China makes pivot on covid-zero policy
December 7, 2022
GBP/USD 1.2153 GBP/EUR 1.1585 EUR/USD 1.0490 USD/CAD 1.3688 EUR/CHF 0.9886 EUR/SEK 10.9183 EUR/NOK 10.5465 EUR/DKK 7.4383 USD/ILS 3.4419 AUD/USD 0.6672 NZD/USD 0.6325 USD/SGD 1.3590 USD/JPY 137.64 USD/CNH 6.9766 USD/INR 82.4798 EUR/ILS 3.6104 GBP/ILS 4.1828 USD/ZAR 17.2835
UK House prices have fallen at the sharpest pace in 14 years through November as surging interest rates have weighed on the affordability of properties. Halifax, the mortgage lender has said that prices fell 2.3%, with the average property now costing £285,579.
Senior economists have warned the government that it is fighting a losing battle with unions over public-sector pay. The gap between private and public-sector pay is now at historically wide levels.EUR
The Euro-area economy expanded by more than initially thought in the third quarter, though a recession triggered by the continent’s energy crisis is likely to have begun. GDP rose by 0.3% in the three months through September.
German industrial production figures were better than expected. Output fell by only 0.1%, surpassing the anticipated 0.6% decline.USD
Democrat incumbent Raphael Warnock defeated Republican Herschel Walker in the hotly contested runoff from Georgia’s US Senate race. His victory secures a democrat majority in the Senate.ASIA/PACIFIC
China’s expansion for 2023 has been forecasted at 5.1%, as recent policy shifts increase the likelihood of sustained and robust economic growth. Markets are hoping that a renewed focus on growth and a pivot on their covid-zero policy could spark enough momentum to counter heavy price pressures from the global slowdown.
The Yen has strengthened by almost 10% in the past six weeks as the Fed begins to show signs of a pivot. It remains the worst-performing developed market currency, following the BOJ’s continuance of loose monetary policyILS
USDILS trades 0.42% higher intraday, above 3.43 as we print.Data & Events
Poland Central Bank Decision
Euro-Area 3Q GDP
US MBA Mortgage Applications
Trading in financial instruments may involve a high degree of risk and may not be suitable for all investors. Trading in financial instruments can result in both loss and profit. Investors should carefully consider whether financial instruments suit their needs, financial resources and personal circumstances.
The information contained in this material is solely for informational purposes only and it is not and should not be construed as an offer or a solicitation of an offer to buy or sell any financial instruments and cannot be relied upon as a representation that any particular transaction necessarily could have been or can be effected at the stated prices. This material does not contrue advice.
For more analysis on FX markets or information regarding SVB's FX services:
0800 023 1440 from within the UK
+44 207 367 7880 from overseas
See all of SVB's latest FX information and commentary.
© 2023 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB).
Silicon Valley Bank is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. FC029579. Silicon Valley Bank is authorised and regulated by the California Department of Business Oversight and the United States Federal Reserve Bank; authorised by the Prudential Regulation Authority with number 577295; and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. Silicon Valley Bank is a subsidiary of SVB Financial Group, a Delaware corporation and is an affiliate of SVB Financial Group UK Limited. SVB Financial Group UK Ltd is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. 5572575 and is authorised and regulated by the Financial Conduct Authority, with reference number 446159. SVB Financial Group and its subsidiary Silicon Valley Bank are members of the Federal Reserve System and Silicon Valley Bank is a member of the FDIC.
Your eligible deposits with Silicon Valley Bank UK are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered. Please click here for further information or visit http://www.fscs.org.uk. For more detailed information about coverage and limits, please review our FSCS Information Sheet at http://www.fscs.org.uk.
This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. Opinions expressed are our opinions as of the date of this content only. The material is based upon information which we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.