Uncertainty over US Fed hike and geopolitical tensions in Ukraine add to market rout.
January 25, 2022
GBP/USD 1.3484 GBP/EUR 1.1934 EUR/USD 1.1298 USD/CAD 1.2643 EUR/CHF 1.0368 EUR/SEK 10.4714 EUR/NOK 10.1768 EUR/DKK 7.4436 USD/ILS 3.1755 AUD/USD 0.7142 NZD/USD 0.6672 USD/SGD 1.3437 USD/JPY 113.89 USD/CNH 6.3329 USD/INR 74.75 EUR/ILS 3.5883 GBP/ILS 4.2794 USD/ZAR 15.3136
UK Public sector borrowing was less than expected in December, 129.3 billion pounds less than this time last year. GBPUSD trades down 0.11% this morning, 0.93% lower from Friday last week. The pair has returned to levels seen in December after what until now had been a strong January for the Pound.
Meanwhile, “Partygate” Continues with fresh allegations of a birthday party and ministers’ manoeuvre to roll back planned national insurance tax hikes.EUR
Natural gas prices and the European energy crunch present manufacturers with an outlook of soaring energy costs, reports suggest many manufacturing sectors could face cost rises between 2-10%.
European equities tumbled with the DAX and CAC40 both down 4.9% due to geopolitical risk from Ukraine. The euro has had a negative start to the day with EURGBP and EURUSD trading 0.2% lower at time of writing. Ukraine tensions continue to stoke risk into the Eurozone, meanwhile investors eye the Italian presidential elections, with the stability of the incumbent government on the line.USD
DXY is up 0.37%, which signals a good start to the day for the dollar, as investors price in the FOMC Rate decisions this week.
The SP500 recovered slightly yesterday by 0.28%, however remains 8% down on monthly highs.
Meanwhile, the Biden administration edge closer to troop deployments in Ukraine, as the wider NATO community mostly come together to support Ukraine with supplies and training.ASIA/PACIFIC
Asian markets tumbled along with their European counterparts as the uncertainty over the US Federal Reserve plans to hike interest rates beds in, and tensions in Ukraine add to risk. ASX200 fell 2.5%, the Nikkei -1.3%, whilst the Hang Seng has made efforts to recover from its session low (-2.64%), however remains down 1.8%.ILS
USDILS pushed higher yesterday, to trade at highs of 3.1855. The shekel found some strength during Asian trading to reach the 3.15-3.16 range; however, this morning has returned to trade just below the 3.18 level as we print.Data & Events
US - FOMC meeting begins
US - Housing Price Index
UK - Public Sector Borrowing (Released)
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