UK Inflation jumps to a 30-year high, ECB expected to stand pat on rates.
April 14, 2022
GBP/USD 1.3135 GBP/EUR 1.2039 EUR/USD 1.0910 USD/CAD 1.2555 EUR/CHF 1.01951 EUR/SEK 10.3004 EUR/NOK 9.5421 EUR/DKK 7.4384 USD/ILS 3.2037 AUD/USD 0.7447 NZD/USD 0.6819 USD/SGD 1.3539 USD/JPY 125.35 USD/CNH 6.3798 USD/INR 76.175 EUR/ILS 3.4945 GBP/ILS 4.2076 USD/ZAR 14.6452
GBPUK Inflation jumps to a 30-year high, with YoY CPI printing at 7%, beating 6.75% expected - marking the sixth straight month that the reading has exceeded forecasts - as the worsening cost of living threatens to derail the recovery. The scale of the crisis will become more striking in April when the 54% rise in the energy price cap kicks in.
Pressure is kicking in on Rishi Sunak do more to help households whose spending power is suffering the biggest squeeze on record.
PM Johnson has endured his first resignation from government since receiving fines for breaking Covid laws. The PM is said to be facing a second fine for a further breach of restrictions.
The FTSE opens in the red down 0.27%.
Cable suffered yesterday dipping below the 1.30 mark to reach lows of 1.2974 after the CPI print, before rebounding into the US and Asia session due to USD weakness, with the pair now trading the 1.3135 region as we print.EURECB President Lagarde is unlikely to provide clarity on the timing of a rate hike in her speech later today. Market's expect she will stand pat on rates, whilst indicating the intention to tighten before year-end.
European shares have advanced this morning with the Euro Stoxx, CAC and DAX gaining 0.33%, 0.41% and 0.16% respectively as we print.
EURUSD was mixed yesterday reaching lows of 1.0809 late London session before rallying into US and Asia to sit in the 1.0910 region as we print. EURGBP dipped over yesterday's trading with the pair falling 0.38% intraday.USDThe USD retreated against a basket of currencies in the US session and into this morning with the DXY dipping 0.87% intraday, however the Fed's hawkish stance could limit the USD downside.
US retail sales data prints today - analysts expect a MoM increase of 0.6%, and YoY increase of 11%. Initial Jobless Claims are also expected to print at 171k.ASIA/PACIFICAsian stocks advanced with the Nikkei, Hang Seng and CSI gaining 1.22%, 0.56% and 1.25% respectively.
The PBOC is expected to trim its key policy rate tomorrow for the second time this year. Turkey are likely to refrain from rising rates for the 4th time this year despite inflation surging 60% - this will keep pressure on the central bank to support the currency through other means.ILSUSDILS was mixed over yesterday's session reaching highs of 3.2230 and lows of 3.1975.Data & EventsECB - rate decision, Lagarde speaks
US - Weekly Jobless claims, retail salesRussia/UkraineThe EU has warned member states that complying with Putin's demand to pay for gas in RUB will violate sanctions.
Joe Biden announced $800mio in additional military aid for Ukraine. He is also considering sending top officials including Kamala Harris to meet with President Zelenskiy.
The UN has warned that rising food prices driven by the war risk driving social unrest in the developing world.
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