US CPI prints softer-than-expected triggering dollar sell-off, German CPI show’s signs of moderation, Truss could add to sterling downside due to BoE policy.
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FX Rates
August 11, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
Source: BloombergGBP/USD 1.2235 GBP/EUR 1.1845 EUR/USD 1.0329 USD/CAD 1.2764 EUR/CHF 0.9713 EUR/SEK 10.3532 EUR/NOK 9.8354 EUR/DKK 7.4402 USD/ILS 3.2638 AUD/USD 0.7099 NZD/USD 0.6424 USD/SGD 1.3692 USD/JPY 132.55 USD/CNH 6.7395 USD/INR 79.4600 EUR/ILS 3.3712 GBP/ILS 3.9932 USD/ZAR 16.2357
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GBP
Liz Truss’ policy on the BoE is adding to fears against the pound and UK government bonds. If Truss were to alter the banks mandate this could spark a selloff in sterling and gilts.
The treasury could hit electricity companies with a new tax if they fail to invest windfall profits in renewable energy.
EURGerman CPI printed as expected at 7.5% YoY yesterday, the same was seen in Italy hinting that Inflation on the continent could be moderating.
EURUSD jumped over 1% higher following the US CPI print yesterday, as markets reassessed the Fed’s policy outlook versus the ECB.
USDUS CPI printed softer-than-expected, boosting stocks as they continue their July rally with the S&P500 closing over 2% higher. Softer inflation has stoked speculation that the Federal Reserve may not be so aggressive in their tightening cycle. Fed member Mary Daly signalled she may support a slower pace of rate hikes. Kashkari, who is now the Fed’s biggest hawk still see rates above 4% throughout 2023.
ASIA/PACIFICSingapore’s GDP unexpectedly contracted in the second quarter, declining 0.2% against expectation of 0.2% growth.
South Korea’s technology exports slipped 0.7%, the first decline in more than two years, a sign that global demand could be cooling.
ILSUSDILS fell roughly 1.75% throughout yesterday as the dollar depreciated globally.
Data & EventsUS PPI, Jobless Claims
Germany June Current Account Balance
UK Tory Party leadership hustings continue.
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