US economy can tolerate further tightening says Harker; Sunak promises tax-cuts for businesses.
May 19, 2022
GBP/USD 1.2385 GBP/EUR 1.1803 EUR/USD 1.0493 USD/CAD 1.2834 EUR/CHF 1.0307 EUR/SEK 10.4881 EUR/NOK 10.3167 EUR/DKK 7.4410 USD/ILS 3.3979 AUD/USD 0.6995 NZD/USD 0.6336 USD/SGD 1.3881 USD/JPY 128.22 USD/CNH 6.7812 USD/INR 77.6900 EUR/ILS 3.5653 GBP/ILS 4.2082 USD/ZAR 16.0332
Rishi Sunak has promised tax cuts for businesses in the budget, ahead of a sharp increase in headline co-operation tax. He also warned that stimulus to ease the cost-of-living crisis could stoke inflation further.
GBPUSD trades higher by 0.28%.EUR
Macron and his allies are projected to retain a majority in next month’s legislative elections.
Brussels has warned the UK to engage with the EU over Northern Ireland, having previously threatened the suspension of the trade agreement should the UK take unilateral action.
EUR trades 0.15% higher against USD.USD
Philadelphia Fed Chair Patrick Harker said the bank can achieve a safe, if not necessarily soft landing, stating that the US economy can stand further tightening.
Economic growth forecasts are being cut. Second-half growth has been slashed by some to 2.4% down from 3%.ASIA/PACIFIC
Japan’s trade deficit widened to $6.6 billion dollars in April, as a weaker yen drove up the cost of imports.
Asian stocks extended a sell-off on fears of an economic downturn, with investors turning to bonds.ILSThe dollar appreciated against the shekel through yesterday. The cross rose from 3.35 up to 3.4 as we print, up 0.3%Data & Events
ECB March Current Account
Eurozone Construction Output
US Initial Jobless Claims
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