The pound reaches 2-month high amid dollar weakness. Stock's recover in Europe led by tech.
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January 11, 2022
GBP/USD 1.3612 GBP/EUR 1.1994 EUR/USD 1.1349 USD/CAD 1.2642 EUR/CHF 1.0500 EUR/SEK 10.2902 EUR/NOK 10.0129 EUR/DKK 7.4385 USD/ILS 3.1329 AUD/USD 0.7185 NZD/USD 0.6774 USD/SGD 1.3529 USD/JPY 115.37 USD/CNH 6.3803 USD/INR 73.8875 EUR/ILS 3.5555 GBP/ILS 4.2634 USD/ZAR 15.5821
GBPAfter dipping to lows of 1.3533, Cable rebounded entering the US and Asia session, and now sits at 2-month highs, in the 1.3612 region as we print, up 0.21% since the start of the week. GBPEUR also gained over yesterday's trading reaching high's of 1.2002 early this morning sitting in the 1.1995 region as we print, levels not seen since February 2020.
It is reported that the British PM Johnson attended a Bring Your Own Booze event, in which more than 100 people were invited, at Downing Street less than an hour after ministers warned the public that social gatherings were prohibited. Johnson, who won a landslide victory in a 2019 election, has faced a barrage of criticism over the allegations - at the time, schools were shut to most pupils, and pubs and restaurants were closed, with strict controls on social mixing.
As we print, the FTSE has gained 0.38% since the open.EUREURUSD was mixed of yesterday's trading, declining to lows of 1.1285 during London hours before rebounding to trade in the 1.1346 region as we print down 0.03% since the start of the week. EURGBP retreated printing down 0.26% since the start of the week.
Italian PM Draghi said keeping schools open is a priority.
As we print, the Euro Stoxx, CAC and DAX have gained 0.82%, 0.83% and 0.75% respectively. Technology stocks are the stand out names following on from the US.USDIn remarks released ahead of today's senate reconfirmation hearing, Jerome Powell stated that the Fed will keep inflation from becoming entrenched, however post-pandemic growth may look different from previous expansions. It is expected that lawmakers today will press the Fed Chair on timing of rate hikes, climate change, and bank capital standards. Fed bets surged over yesterday's session with market participants expecting between 3 and 6 hikes this year.
The dollar peaked towards the end of the London session before retreating into US and Asia trading. GBPUSD dipped to lows of 1.3533 before rebounding sitting the 1.3612 region as we print.
US stocks declined with the Dow Jones and S&P declining 0.45% and 0.14% respectively whilst the NASDAQ gained 0.05%. Benchmark treasury yields were steady.
A record number of US schools cancelled lessons or switched to virtual learning as of last week as the spread of the Omicron variant continues to cause concern.ASIA/PACIFICAsian stocks retreated following the US dip, with the Nikkei, Hang Seng and CSI declining 0.9%, 0.03% and 0.96% respectively.
Bitcoin recovered to over $42k after dipping to below $40k earlier. Oil ticked up.
Hong Kong will suspend in person nursery and primary schools from Friday in a bid to stop the spread.ILSUSDILS reached highs of 3.1511 over yesterday's session before retreating to trade in the 3.1338 region as we print, up 0.89% since the start of the week.
The surge in economic activity that began in the second quarter led the budget deficit on a substantial decline to 4.5% of the GDP (down by 6.9% from 2020). Despite the spread of the Omicron variant in the past month, the CBS’ Consumer Confidence Index increased slightly in December.Data & EventsItaly - retail sales
Eurozone - ECB Kazaks speaks
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