BOE hikes rates by 25bps. Xi and Biden open talks on Russian/Ukraine crisis
March 18, 2022
GBP/USD 1.3152 GBP/EUR 1.1874 EUR/USD 1.1075 USD/CAD 1.2596 EUR/CHF 1.03634 EUR/SEK 10.4265 EUR/NOK 9.7392 EUR/DKK 7.4440 USD/ILS 3.2372 AUD/USD 0.7394 NZD/USD 0.6895 USD/SGD 1.3553 USD/JPY 118.88 USD/CNH 6.3744 USD/INR 75.80 EUR/ILS 3.5851 GBP/ILS 4.2559 USD/ZAR 14.9307
GBPThe British Pound has steadied in the aftermath of the Bank of England raising their key interest rate by 25 basis points (bps) yesterday sitting in the 1.3140 region as we print.
The MPC voted by a majority of 8-1 for the move, with deputy Bank governor Jon Cunliffe the only member to vote for keeping rates unchanged. GBPUSD initially sold off as much as 0.93%, given that markets expected some members to vote for a 50bp hike which did not materialise.
The FTSE has dipped 0.1% since the open.EURItaly will drop almost all restrictions at the end of March.
The euro has continued in its recovery throughout the week with EURUSD trading up 1.38% since Monday morning, as reports suggest there may be progress on Russia/Ukraine peace talks.
European stocks decline this morning with Eurostoxx, CAC and DAX dipping 0.33%, 0.59% and 0.49% respectively as we print.USDBiden and President Xi will speak today with Biden expecting to request China up the pressure on Moscow. The muted views out of China have left president Biden concerned that Xi may be moving closer to supporting Moscow.
US equity futures decline. The dollar has continued it retreat throughout the week with the Bloomberg Dollar Index trading down 0.96% since Monday morning.ASIA/PACIFICAsian stocks were mixed as the rally in Chinese tech fizzled - the Nikkei and CSI trade up 0.65% and 0.67% whilst the Hang Seng has dipped 0.41%.
China's XI has pledged to reduce the economic impact of the most recent lockdowns.
The yen has dropped to lowest level in almost 6 years after the BOJ stuck with its dovish stance - USDJPY trades around 118.83 as we print. The BOJ kept its stimulus on hold and indicated increased concerns monitoring commodity prices and the war in Ukraine.
Brent jumped to around $109. Nickel drops 12% in another glitchy start to LME trading.ILSUSDILS continued its decline throughout the week with USDILS sitting in the 3.2400 region as we print down 0.64% on the week.Data & EventsSweden - unemployment
France - Q4 wages
Italy - trade balance
Russia - rate decisionRussia/UkraineAccording to a pentagon assessment, Putin will most likely threaten to use nuclear weapons if Ukrainian resistance to his invasion continues.
Strikes continue to occur in Ukraine on infrastructure and civilians with the situation in Mariupol being described as critical.
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