Rishi Sunak sets out measures to address the cost of living crisis in the UK, Global stocks rally with the adjusted risk-on sentiment
May 27, 2022
GBP/USD 1.2618 GBP/EUR 1.1756 EUR/USD 1.0733 USD/CAD 1.2744 EUR/CHF 1.02911 EUR/SEK 10.5598 EUR/NOK 10.2108 EUR/DKK 7.4396 USD/ILS 3.3482 AUD/USD 0.7145 NZD/USD 0.6524 USD/SGD 1.3693 USD/JPY 127.08 USD/CNH 6.7365 USD/INR 77.65 EUR/ILS 3.5961 GBP/ILS 4.2246 USD/ZAR 15.6454
Chancellor Rishi Sunak has set out measures to address the rising cost of living within the UK. One off payment’s will be given to the most vulnerable households – 8 million people are expected to receive £650 as a one payment whilst all households will receive £400 discount on energy bills. Sunak states that it will be funded by a one-off windfall tax on oil and gas companies.
GBPUSD trades higher after yesterday’s session with the pair gaining as much as 1.17% this week to sit in the 1.2620 region as we print.EUR
Turkey’s foreign minister has warned Greece against exceeding limits on its military forces allowed on islands in the Aegean Sea as the US has asked the NATO allies to step back from recent tensions.
Europe is developing contingency plans in case there is a complete breakdown of Russian gas imports – they are aiming to store as much gas as possible and are expecting to replace most of Russian shipments later this year.
European stocks open in the green with the Euro Stoxx, CAC and DAX trading up 0.62%, 0.65% and 0.53% as we print.
EURUSD rallied during yesterday’s trading as the risk-on market sentiment keeps weighing on the dollar. EURUSD has traded through the 1.07 handle again to sit in the 1.0744 region as we print up 2.08% this week. Increased hawkishness from most ECB’s rate-setters has also supported the EUR.USD
The dollar continued its downward trajectory yesterday as the risk-on market sentiment continues to weigh on the USD. The DXY trades down 1.35% this week.
Markets will be paying close attention to US inflation data out today., The core PCE deflator is expected to show price growth has slowed to 4.9% in April from 5.2% in March. Personal income data will also be released.
US stocks rallied yesterday with the NASDAQ, S&P and Dow Jones gaining 2.68%, 1.99% and 1.61% respectively.ASIA/PACIFIC
The global risk on sentiment meant Asian stocks also rallied with the Hang Seng gaining as much as 2.19%.ILS
USDILS was mixed over Thursday’s session reaching highs of 3.3742 early morning before dipping to 3.34 late London. USDILS sits in the 3.3560 region as we print.Data & Events
Spain – retail sales
Euro Area – money supply, ECB Lane speaks
US – personal income spending, core PCE deflator
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