UK inflation advances to 9.1%. Biden hopes to bring gasoline tax holiday; Yen hit 24 year lows;
June 22, 2022
GBP/USD 1.2183 GBP/EUR 1.1610 EUR/USD 1.0494 USD/CAD 1.2977 EUR/CHF 1.0151 EUR/SEK 10.6621 EUR/NOK 10.4514 EUR/DKK 7.4389 USD/ILS 3.4751 AUD/USD 0.6904 NZD/USD 0.6262 USD/SGD 1.3894 USD/JPY 136.35 USD/CNH 6.7255 USD/INR 78.2713 EUR/ILS 3.6466 GBP/ILS 4.2335 USD/ZAR 15.9894
UK CPI printed at 9.1% accelerating from 0.1% the month prior. Inflation is currently expected to peak near 10% in October.
According to the resolution foundation, Brexit reduced the competitiveness of the British economy, with workers expected to be £500 worse off by 2030. Despite this, UK Stocks have started to outperform US and European equities thanks to its large exposure to commodity firms and banks.EUR
The Czech central bank is seen hiking between 0.75%-1.5% in what might be the last of their big moves to contain inflation.
Italy faces a political crisis as significant politicians threaten to leave the Five Star movement, over the party’s refusal to back military support for Ukraine.USD
Biden escalated a war of words with the oil industry, as officials meet to discuss how to lower gasoline prices. Some believe Biden will call on congress to enact a gasoline tax holiday today, saving the consumer 18.4 cents per gallon
Powell could offer a more detailed explanation for last month’s 75 bp hike, as he testifies before lawmakers today. The focus will be on the fed’s ability to control inflation.ASIA/PACIFIC
The yen hit a 24-year low before recovering following news from the BoJ meeting minutes that officials discussed forex intervention at their April meeting.
China’s finance minister has stated that Beijing is considering further pro-growth policies to aid an economy struggling to shake off the latest omicron wave.ILS
USDILS pushed higher than yesterday’s range, up 0.6%.Data & Events
UK House Price Index
BoE’s Cunliffe speaks
Czech Rate Decision
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