Sunak continues bid to get Brexit "done." ECB hike cycle expected to peak in July at 3.25%
January 16, 2023
GBP/USD 1.2208 GBP/EUR 1.1282 EUR/USD 1.0822 USD/CAD 1.3406 EUR/CHF 1.0020 EUR/SEK 11.2649 EUR/NOK 10.7064 EUR/DKK 7.4394 USD/ILS 3.4198 AUD/USD 0.6969 NZD/USD 0.6385 USD/SGD 1.3196 USD/JPY 128.41 USD/CNH 6.7285 USD/INR 81.61 EUR/ILS 3.701 GBP/ILS 4.1759 USD/ZAR 17.0065
GBPGBPUSD gained 1.23% v the USD last week and continued the rally during Asia trading however has since dipped to trade in the 1.2190 region as we print.
In a bid to get Brexit "done," James Cleverly, the UK foreign secretary, will hold talks with the European Commission vice-president, aimed at clearing the path for a deal in Q1 2023 on the Northern Ireland protocol. Last week the two sides secured a tentative breakthrough with a deal that will allow the EU to share “real-time” UK data on trade flows across the Irish Sea from Great Britain to Northern Ireland.
Rishi Sunak will on Monday propose new measures to help the police stop disruptive public protest in Britain, heading further down a route that has drawn heavy criticism from civil rights groups.EUREconomists expect that the ECB will end its rate-hike cycle in July at a peak of 3.25% from its current 2%. Markets are expecting a 50bp hike in Fed and March.
According to a study from MLIV Pulse, Europe will avoid an energy crisis this year.
Credit Suisse is the latest bank expected to cut more than 10% of its European investment banking jobs this year.
EURUSD gained 1.8% last week, however, has dipped slightly this morning to trade in the 1.0811 region.USDThe US dollar declined as investors weigh up the expectations of easing inflation, that has fueled rally in riskier assets. Easing inflation has fueled bets that the Federal Reserve will slow the pace of interest rate hikes.
The US market is closed today for Martin Luther King Day.
The White House stated on Saturday, that it has discovered more sensitive documents in Joe Biden's home, piling pressure on the US president.ASIA/PACIFICThe global elite are meeting for the first winter World Economic Forum in three years - 100 billionaires are set to attend with none from Russia or China.
Asian shares rallied as falling inflation expectation's fuel a risk on, share rally globally. Bitcoin traded above $21,000 following a rebound over the weekend.ILSThe Shekel gained 2.6% vs the USD last week and sits in the 3.4230 region as we print.Data & EventsAustria - CPI
Poland - CPI
UK - BOE Bailey and Wood testify on financial stability
US - markets closed for Martin Luther King day
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