UN to discuss Ukraine, Italy elects Sergio Mattarella as Asia winds down for the lunar new year
January 31, 2022
GBP/USD 1.3436 GBP/EUR 1.2027 EUR/USD 1.1171 USD/CAD 1.2726 EUR/CHF 1.0405 EUR/SEK 10.4746 EUR/NOK 10.0066 EUR/DKK 7.4426 USD/ILS 3.1853 AUD/USD 0.7056 NZD/USD 0.6582 USD/SGD 1.3542 USD/JPY 115.42 USD/CNH 6.3804 USD/INR 74.6725 EUR/ILS 3.5583 GBP/ILS 4.2796 USD/ZAR 15.4903
The Met investigation into ‘party gate’ is expected to be released early this week, with the UK Govt confirming the ‘redacted version is imminent’. The Government has decided to press forward with its payroll tax increase on national insurance, despite pressure from backbench MPs due to the strains it may place on consumers in an economy of rising prices.
The FTSE 100 has opened the week up 0.3%, with Sterling gaining against the Dollar and Euro during the Asian session.EUR
Italy elected Sergio Mattarella as Head of State while Draghi stays on a PM, with many suggesting this is a welcome sign of political stability.
Euro Area consumer confidence matched expectations on Friday, slightly down on the previous month. German GDP failed to meet forecasts, declining on the previous 3 months as Covid restrictions were in place.
The DAX and CAC40 have pushed higher 1.25% and 0.8% respectively since the London Open, and the Euro trades 0.2% higher against the dollar.USD
Last weeks Fed meeting continues to divide opinion on the interest rate outlook, with some calling for a five-hike annum, whilst others are sticking to a quarterly 25bp hike. Atlanta Fed chief, Raphael Bostic, commented that the Fed could raise by 50 bps in March, something not seen since 2000.
The UN Security council meets today to debate the Ukraine crisis. US senators are closing in on agreeing some Russian sanctions, meanwhile Biden has expressed his willingness to send troops to Eastern Europe.
The DXY trades near last weeks highs at 97.1, up 1.5% from last Monday. The sell-off in treasuries continued, with the two-year rate increasing by 3bps.ASIA/PACIFIC
Most Asian stocks rose with the MSCI Asia Pacific up 0.59% intraday, powered by tech equities in Japan and Hong Kong. Last week saw auto-manufacturing bounce in Japan.
Chinese PMI fell 2.1 to 50.1 in January, slowed by strict government action on covid outbreaks and the slowdown ahead of lunar new year festivities. China, South Korea, and Taiwan are shut for the Lunar new year holiday.ILS
The Shekel has strengthened against the dollar as of this morning, with USDILS down 0.30% as we print.
Israeli President Isaac Herzog will travel to the UAE this week, in a bid to ease and normalise tension with gulf states.Data & Events
Euro-area - Q4 GDP
Germany – Inflation Rate
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