Treasury yield's rise as rate-hike fears mount. ECB President Lagarde states any adjustment to monetary policy will be “gradual."
February 8, 2022
GBP/USD 1.3523 GBP/EUR 1.1865 EUR/USD 1.1398 USD/CAD 1.2693 EUR/CHF 1.0553 EUR/SEK 10.4358 EUR/NOK 10.0538 EUR/DKK 7.4433 USD/ILS 3.2061 AUD/USD 0.7115 NZD/USD 0.6632 USD/SGD 1.3453 USD/JPY 115.47 USD/CNH 6.3746 USD/INR 74.7675 EUR/ILS 3.6550 GBP/ILS 4.3338 USD/ZAR 15.5601
GBPCable traded within a relatively tight range yesterday, hitting highs of 1.3557 and lows of 1.3491, with the pair sitting down just 0.02% as we print. The pound has gained vs the EUR however, sitting up 0.45% this week as we print. Some economists believe the pound should remain supported in the short-term on real interest rate differentials.
Boris Johnson is coming under renewed pressure to retract his claim that Keir Starmer was personally responsible for allowing Jimmy Savile to escape justice after the labor leader was chased by protestors.
New data from Google shows that City of London offices are now almost 70% full, the most since mid-December.
The FTSE gained 0.76% over Monday's trading.EUREURUSD was mixed throughout Monday's trading, however has dipped into this morning and trades down 0.42% this week. EURGBP followed a similar path, with the pair trading down 0.41% since the start of the week.
As the debate over the Eurozone's first interest-rate hike heats up, ECB President Christine Lagarde said any adjustment to monetary policy will be “gradual." She further stated that officials must rely on the data, and that must maintain flexibility and optionality “more than ever.” She declined to rule out the possibility of a hike this year.
European stocks rallied on Monday, with the Euro Stoxx, CAC and DAX gaining 0.83%, 0.83% and 0.71% respectively.
Italy lifts mask requirements.USDMarket's have been relatively choppy over the past 24 hours, and this seems to be driven by the mixed view on the USD ever since the employment data surprised to the upside on Monday - the US unexpectedly added 467K payrolls in January of 2022 much better than the forecasted 150K.
Treasury yield's rise as rate-hike fears mount - sovereign bonds extended declines on Tuesday, with the 10-year Treasury yield approaching 2%. USD trader's will be hoping for more clarity on the Fed's move, after Thursday's CPI data. The dollar has gained this morning and trades up 0.19% this week.
US stocks declined with the S&P and NASDAQ dipping 0.37% and 0.58% respectively.
Multiple US states are lifting mask requirements.ASIA/PACIFICAsian markets were mixed amid a selloff in China - the Nikkei gained 0.15% whilst the Hang Seng and CSI 300 dipped 1.02% and 0.55% as we print.
Yields on bonds and treasuries from New Zealand and Australia gained on the increased prospect of rate hikes as other global powers consider tightening policy. The AUD continues to find some support from yesterday's border headlines.
Hong Kong is expected to announce tighter measures today as cases have been doubling every 3 days.ILSUSDILS was mixed over Monday's trading, dipping to lows of 3.1871 mid afternoon before recovering to sit in the 3.2053 region as we print.
The Bank of Israel sees signs of higher inflation this year than previously, the Deputy Governor Andrew Abir said on Monday. The BOI may increase their 2022 inflation forecast, however they are not committed to any interest rate level. He further stated that the Omicron wave may dent GDP by 2%.Data & EventsFrance - Trade Balance
Spain - Industrial Output
Italy - Retail Sales
Eurozone - ECB de Cos and Villeroy speak
US - Balance of trade
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