ECB expected to delay action, hawkish surprise possible but unlikely; Conservative Yoon Suk-yeol elected South Korean President; UAE to nudge OPEC allies to increase oil production.
March 10, 2022
GBP/USD 1.3165 GBP/EUR 1.1917 EUR/USD 1.1048 USD/CAD 1.2824 EUR/CHF 1.0239 EUR/SEK 10.7397 EUR/NOK 9.8893 EUR/DKK 7.4420 USD/ILS 3.2619 AUD/USD 0.7335 NZD/USD 0.6847 USD/SGD 1.3595 USD/JPY 115.98 USD/CNH 6.3285 USD/INR 76.2388 EUR/ILS 3.6029 GBP/ILS 4.2935 USD/ZAR 15.1120
UK starting salaries for permanent staff climbed at the second-fastest rate on record in Feb. Elsewhere, the invasion of Ukraine could take the hit to households from higher energy costs to £43 billion.
The FTSE has opened down -0.82%. following a day which saw most European markets in positive territory. The FTSE has proved less volatile throughout the ongoing Ukraine conflict.
GBPUSD trades down -0.2% and EURGBP trades up 0.1%.EUR
The ECB meets today, it is unlikely to act however a hawkish surprise is possible. Surveyed expectation is that QE will roll back in Q4, followed by a 0.25% hike in December.
Ukraine’s Foreign Minister has called for the EU to green light Ukrainian membership.
EURUSD trades down -0.3% intraday, and the DAX and STOXX have opened down -2%.USD
The U.S. House passed a long-delayed $1.5 trillion spending bill that will fund the government and provide financial aid to Ukraine. Meanwhile Feb. CPI is due today, surveyed to accelerate to 7.9% YoY, bolstering Fed Plans to hike next year.
The house also passed legislation barring US imports of Russian oil.
Yesterday, was a bolstering session for US equities, the NASDAQ and S&P500 closed up 3.6% and 2.6%. The DXY currently trades up 0.25%ASIA/PACIFIC
South Korea’s Yoon Suk-yeol was elected president. He has vowed to rebuild the US alliance and focus on the future, regarding relations with Japan.
Australia announced a $27.8 billion expansion of Australia’s military, citing threats in the Indo-pacific region as justification.
China’s new lending is expected to have eased in February due to the Lunar new year. Meanwhile, Hong Kong will not reopen to travel until COVID is under control, expectations are that borders will reopen in a few months.ILS
USDILS trades near 3.265, falling away from 3.3 levels seen on Tuesday.Data & Events
ECB – Meeting and Rates Decision
US – Feb CPI, Jobless Claims
US – Sell 30-year bonds.
IT – Jan PPI
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