US retails sales remain resilient, UK’s budget announcement expected today, US data signals downshift more likely by Fed.
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FX Rates
November 17, 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 1.1921 GBP/EUR 1.1480 EUR/USD 1.0384 USD/CAD 1.3336 EUR/CHF 0.9825 EUR/SEK 10.9173 EUR/NOK 10.4242 EUR/DKK 7.4386 USD/ILS 3.4353 AUD/USD 0.6713 NZD/USD 0.6142 USD/SGD 1.3724 USD/JPY 139.40 USD/CNH 7.1351 USD/INR 81.5625 EUR/ILS 3.5672 GBP/ILS 4.0952 USD/ZAR 17.3109
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GBP
Today sees the much-anticipated UK budget proposals from the new government. The budget is expected to show fiscal responsibility, with tax increases and spending cuts heavily anticipated. Jeremy Hunt has said previously that everyone will need to pay more and has hinted that those with the broadest shoulder will have to bear the 'greatest burden'.
Jeremy Hunt will speak at 3:30 UK Time.
EURThe European Union is running out of time to approve Hungary’s recovery funds ahead of a key deadline. The EC likely won’t issue its verdict next week on the investment and reform proposals sent by Budapest. The package needs to be approved by the end of the year
Policymakers at the European Central Bank could slow down interest rates hike with only a 0.5% hike next month. A momentum behind another 0.75% appears to dissipate based of the tone of ECB officials, barring an inflation shock the governing council could favour the less aggressive step.
USDUS retail sales were resilient amidst a worsening economic outlook as the Fed’s aggressive policy path weighs on the economy. Headline sales grew by 1.3% in October, topping the consensus of 1.0% growth. Consumer spending also beat expectations surging by 0.9%, against an anticipated 0.2%. It is expected that as the winter continues consumers might begin to hunker down early next year.
On the other hand, Industrial production fell 0.1% in the same month, against estimates for a 0.3% gain. These figures add to a growing ensemble of data signalling the core-good inflation may be slowing. Both Retail sales and Industrial Production could make the FOMC more comfortable with a decision to downshift to a 0.5% hike in December.
ASIA/PACIFICBank Indonesia’s rate hike today is another step in supporting the rupiah. The central bank raised its interest rate by 0.5%, whilst many expected a 0.25% rise. Inflation remains high at 5.9%, however growth forecasts remain between its 4.5-5.3% anticipated range.
The Philippines central bank reinforced its commitment to anchoring inflation expectations with forward guidance which points to more tightening, whilst core-inflation remains above target.
ILSUSDILS trades 0.1% higher intraday. Israel Year-to-Date bond sales are down 60% compared to last year.Data & EventsEurozone CPI
UK Fiscal Statement/Economic Forecasts
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