US will intervene should China invade Taiwan; UK wants to deploy to The Black Sea to protect grain exports; German business confidence improves unexpectedly.
May 24, 2022
GBP/USD 1.2589 GBP/EUR 1.1746 EUR/USD 1.0718 USD/CAD 1.2793 EUR/CHF 1.0335 EUR/SEK 10.4950 EUR/NOK 10.2787 EUR/DKK 7.4412 USD/ILS 3.3516 AUD/USD 0.7088 NZD/USD 0.6441 USD/SGD 1.3738 USD/JPY 127.57 USD/CNH 6.6865 USD/INR 77.6150 EUR/ILS 3.5921 GBP/ILS 4.2192 USD/ZAR 15.7711
Britain is in talks with allies to send warships to The Black Sea, to escort freighters carrying Ukrainian grain. The “party-gate” scandal continues, as pictures of Boris Johnson drinking with colleagues during lockdown were released.
Meanwhile, the UK aims to introduce it controversial bill to handle the Northern Ireland protocol. This will likely face retaliation from the EU.EUR
German Ifo Business confidence strengthened unexpectedly, despite mounting pressures on corporations. This could affect euro-area flash PMI due today, which is expected to fall to 54.7 this month.
ECB’s Villeroy has called for Europe to act quickly to toughen regulation on crypto assets.
EURUSD trades -0.2% lower as we print.USD
Joe Biden has stated that the US will intervene should China invade Taiwan. FOMC members remain confident that a recession is avoidable despite hiking to the neutral rate before year-end. Fed hawks were joined by Daly and Bostic, echoing claims that a soft landing was attainable.
Primaries in Georgia, Alabama and Texas will offer an insight into voter sentiment.ASIA/PACIFIC
Asian manufacturers, notably in clothing and technology, are among those that are seeing early signs of cooling demand as inflation hits consumers.
China upped stimulus yesterday, offering $21 billion dollars in tax rebates. Beijing’s reduction in taxes this year is now 2.65 trillion yuan.ILSUSDILS has trades higher by 0.51%, following a decline below 3.34 yesterday.Data & Events
PMIs – US, EU, UK
France – Business & Manufacturing Confidence
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