Unrest in China as officials reimpose covid controls, Powell likely to signal 0.5% rise in December, Brexit re-emerges in UK political arena
November 28, 2022
GBP/USD 1.2092 GBP/EUR 1.1570 EUR/USD 1.0452 USD/CAD 1.3443 EUR/CHF 0.9848 EUR/SEK 10.8562 EUR/NOK 10.3533 EUR/DKK 7.4366 USD/ILS 3.4459 AUD/USD 0.6703 NZD/USD 0.6232 USD/SGD 1.3736 USD/JPY 137.69 USD/CNH 7.2088 USD/INR 81.6650 EUR/ILS 3.6015 GBP/ILS 4.1666 USD/ZAR 17.1050
Brexit has barged its way back onto the UK political agenda in recent months, notably following a report that Rishi Sunak’s government may be pivoting on their policy towards the EU, potentially seeking closer ties. However, recent polling has shone a light on mounting regret amongst voters, largely due to worsening economic conditions. Despite this total real growth since 2Q 2016 has been stronger than Italy and Germany.EUR
A tight labour market means workers are entering pay negotiations from a position of strength. The strength in the labour market will likely embolden the ECB to continue hiking through to March. The terminal rate is expected to reach 2.75%, up from previous expectations of 2.25%USD
Ahead of Powell’s speech on Wednesday, markets widely anticipate that the Federal reserve will signal a slowing to the tightening pace, cementing expectations of a 0.5% hike in December. The speech nominally focused on the labour market will be one of the last from policy makers ahead of the FOMC’s Dec 13-14 gathering.ASIA/PACIFIC
China’s economic activity slumped in November as the country faces a surge of Covid-19, which has been swiftly followed by waves of protests against tighter virus restrictions. Mainland China had more than 480,000 new covid cases in November.
Unrest has spread to dozens of cities including Beijing, Wuhan and Xinjiang.ILS
Inflation forecasts are being raised by Israeli institutions, with some predicting that the Bank of Israel’s rates could peak above 3.5%. USDILS trades above 3.43 as of this morning.Data & Events
No Notable Events
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