Weak PMI data lifts euro and sterling off yearly lows, Powell could make dovish turn, European businesses face additional headwinds.
August 24, 2022
GBP/USD 1.1825 GBP/EUR 1.1884 EUR/USD 0.9951 USD/CAD 1.2974 EUR/CHF 0.9584 EUR/SEK 10.6056 EUR/NOK 9.6749 EUR/DKK 7.4381 USD/ILS 3.2796 AUD/USD 0.6921 NZD/USD 0.6197 USD/SGD 1.3940 USD/JPY 136.48 USD/CNH 6.8781 USD/INR 79.7725 EUR/ILS 3.2634 GBP/ILS 3.8781 USD/ZAR 17.0344
Protecting British consumers from rising energy costs could cost more than £100 billion over the next two-year, Scottish Power’s CEO has said, whilst discussing a £2,000 per year energy cap.
GBPUSD jumped off fresh lows yesterday briefly reaching 1.1720 yesterday. It now trades higher, around 1.1830, following US PMI data that missed expectations.EUR
European stock valuations have plunged when compared to their US counterparts. Despite high inflation and monetary tightening becoming a global phenomenon, European businesses face additional headwinds with energy uncertainty and political uncertainty.
The Czech Republic is holding talks on an EU-wide initiative to mitigate the impact of higher energy prices.USD
Minutes from the Fed’s discount rate meeting showed that two Fed chiefs favoured a 100-bp rate hike in July. There has been speculation that Jerome Powell may make a dovish turn advocating for the slowing of tightening. US futures slipped as equities face uncertainty over the Fed policy path.
The US plans to announce an additional $3 billion in military aid for Ukraine, as the war has been ongoing for six months now.ASIA/PACIFIC
A large tropical storm has swept across the Philippines which is forecasted to strengthen as it heads towards Hong Kong.
Japan is looking to restart nuclear reactors as it plans to meet its growing power need and reduce energy dependence on its neighbours.ILS
USDILS trades 0.25% higher above 3.2700.Data & Events
No Major Events
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