Ukraine war escalation fears dissipate, UK CPI rose to 11.1% in October as utility bills weigh on consumers, Trump announces 2024 presidential Bid.
November 16, 2022
GBP/USD 1.1876 GBP/EUR 1.1406 EUR/USD 1.0411 USD/CAD 1.3258 EUR/CHF 0.9807 EUR/SEK 10.8810 EUR/NOK 10.3762 EUR/DKK 7.4382 USD/ILS 3.4203 AUD/USD 0.6768 NZD/USD 0.6170 USD/SGD 1.3687 USD/JPY 139.65 USD/CNH 7.0879 USD/INR 81.2913 EUR/ILS 3.5609 GBP/ILS 4.0616 USD/ZAR 17.2742
UK CPI rose to 11.1% in October from 10.1% in September. The Main reason for the acceleration in annual inflation is likely the rise in utility bills, with the price of energy up 24.7% on the month. Due to the government’s energy price cap, inflation is expected to peak through October, with inflation forecasted to edge down through the winter.
Rising borrowing costs could lead to a 10% collapse in house prices through 2023, as a gap has opened up between the price of a UK house and what can be justified by the fundamentals.EUR
European natural gas declined, taking a breather from this week’s rebound, as traders weighed ample winter stockpiles against the risk of heightened tensions between Russia and NATO. Benchmark futures fell as much as 6.1% before paring some of those losses.
The US has stated that the missile that killed two in Poland was likely not fired from Russia. According to US officials, initial findings suggested that the missile that hit Poland was fired by Ukrainian forces at an incoming missile.USD
Donald Trump has announced his 2024 Presidential Bid. Trump’s influence across the Republican party is vast, however the midterms last week failed to deliver the ‘red wave’ that was predicted, and many of the candidates that received Trump’s endorsement underperformed.
US Futures rose as Ukraine escalation fears recede, as the missile strike in Poland likely was a Ukrainian stray missile.ASIA/PACIFIC
The third quarter acceleration in Australia’s Pay growth is unlikely to threaten a wage-price spiral. As international borders reopen this should increase labour supply, damping emerging pressure on pay.
Corporate Japan’s plans to boost machine orders in the fourth quarter point to stronger capital expenditure ahead. This could support a rebound in GDP after the 3Q contraction.ILS
USDILS trades 0.2% higher intraday, remaining largely unchanged from the significant moves seen following last week’s US CPI.Data & Events
US Retail Sales
US Industrial Production
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