US producer price inflation expected to slow, economist see peak ECB rate at 2.5% in March, China’s abandonment of covid-zero policy could add to short-term downside.
December 9, 2022
GBP/USD 1.2245 GBP/EUR 1.1592 EUR/USD 1.0563 USD/CAD 1.3633 EUR/CHF 0.9866 EUR/SEK 10.9055 EUR/NOK 10.5455 EUR/DKK 7.4381 USD/ILS 3.4230 AUD/USD 0.6763 NZD/USD 0.6380 USD/SGD 1.3518 USD/JPY 136.18 USD/CNH 6.9512 USD/INR 82.2200 EUR/ILS 3.6155 GBP/ILS 4.1912 USD/ZAR 17.1598
The UK government is laying out new measures to boost the financial services industry in the post-Brexit world. It is expected to repeal EU regulations, and overhaul EU rules that put companies off listing in the UK. The government will free retail focused banks from ring-fencing rules and issue fresh mandates to regulators.
Britons moving into rental properties have seen prices soar at twice the pace of wages this year.EUR
A survey of economist sees the ECB raising by 0.5% both in December and in February raising the deposit rate to a peak of 2.5%. According to the same survey they see Quantitative tightening beginning in March.
The French economy could make it through the year without a decline in output. GDP is expected to grow 0.1% in the fourth quarter, narrowly outperforming against the euro-area which is expected to see a decline.USD
US Producer Price Index (PPI) is due later today, with the current consensus seeing a moderation in prices, as it slows from 8% in October to 7.2% this year. Inflation in primary goods may be easing thanks to a cooling international and domestic demand, improving supply chains and a stronger dollar in recent months.
The US is preparing for a fresh round of sanctions on Russia and China for what is describes as human rights abuses’ASIA/PACIFIC
China’s factory-gate prices fell again in November, whilst consumer inflation eased. PPI dropped 1.3% YoY. The gain in CPI slowed to 1.6% from 2.1%.
As China abruptly abandons its covid-zero policy, this could cause further disruptions in the short-term as infections are set to receive.ILS
USDILS trades 0.2% lower intraday near 3.42. Netanyahu has asked for a two-week extension to allow him more time to form a ruling coalition. The incoming PM is working to finalise an agreement with right leaning parties.Data & Events
US Dec U. Michigan Sentiment
BoE Inflation Attitudes Survey.
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