Fuel prices push global inflation higher, with US CPI printing at 8.5%, the highest figure since 1981. The UK reading surges to 7%, the highest in 30 years. The Euro slips as Putin warns peace talks are at a "dead end".
April 13, 2022
GBP/USD 1.3006 GBP/EUR 1.2004 EUR/USD 1.0835 USD/CAD 1.2630 EUR/CHF 1.0099 EUR/SEK 10.3228 EUR/NOK 9.5420 EUR/DKK 7.4380 USD/ILS 3.2027 AUD/USD 0.7436 NZD/USD 0.6794 USD/SGD 1.3641 USD/JPY 126.10 USD/CNH 6.3748 USD/INR 76.1550 EUR/ILS 3.4697 GBP/ILS 4.1652 USD/ZAR 14.4558
UK inflation surged to 7% in March, the highest level in three decades as the cost-of-living crisis continues to threaten the economic recovery from the pandemic. The reading was the sixth consecutive print above expectations, driven by an increase in fuel, metals and used car prices. Economists predict the rise will continue as the increase in household energy bills takes effect this month.
Boris Johnson and Rishi Sunak have rejected calls from the opposition to resign, after receiving police fines for breaking lockdown rules in 2020. So far 50 fines have been issued, with more expected to come.EUR
The euro has slipped to one-month lows as concerns over the longevity of the Ukraine/Russia conflict have heightened. EURUSD dropped 0.5% yesterday, as Vladimir Putin cited that peace talks are at a “dead end”.
Officials from Brussels have expressed concerns over the French Election and potential for Marine Le Pen to win the run off vote and take France out of Nato’s military structures. Le Pen has also openly expressed her opposition to sanctions on Russian gas in the last 24 hours.USD
Pressure has been reinforced for the Federal Reserve to aggressively raise interest rates, as US Consumer Price Index for March climbed to the highest figure since 1981, printing at 8.5%. The monthly gain of 1.2% is the biggest since 2005. The price of gasoline was the main driver, contributing to 50% of the increase, while the cost of food was not far behind. The Dollar climbed on the release, up 0.2% against the pound to trade below the 1.3000 figure at time of writing.ASIA/PACIFIC
The Bank of New Zealand raised rates 0.5%, the biggest rise in 22 years as price pressures continue to influence policy. The NZDUSD gained 0.7% initially on the release, however has reversed since, down 0.8%.
Authorities in Shanghai announced that lockdown measures will start to ease in some areas from Monday, despite record cases. Neighborhoods that have not reported a positive case in two weeks will be allowed “appropriate activity”.ILSThe Shekel has strengthened this morning, gaining 0.23% against the US Dollar as BoI monetary committee members confirm raising interest rates will be a process to bring inflation down. USDILS trades just above 3.2000 at time of writing.Data & EventsUK - Inflation
US - MBA Mortgage Applications
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