Italy heads into political turmoil. ECB expected to hike for the first time in over a decade.
July 21, 2022
GBP/USD 1.1926 GBP/EUR 1.1724 EUR/USD 1.0173 USD/CAD 1.2913 EUR/CHF 0.99001 EUR/SEK 10.4336 EUR/NOK 10.1679 EUR/DKK 7.4438 USD/ILS 3.4456 AUD/USD 0.6864 NZD/USD 0.6194 USD/SGD 1.3952 USD/JPY 138.59 USD/CNH 6.7769 USD/INR 79.9625 EUR/ILS 3.5061 GBP/ILS 4.1085 USD/ZAR 17.2402
Rishi Sunak and Liz Truss topped the final ballot of UK MPs yesterday, leading the race to become the UK’s next PM. The two finalists will now set out their stalls at 12 hustings to be held around the UK along with partaking in two TV debates - BBC will host on 25 July and whilst Sky News hosts on 4 August. The party's 160,000 members will vote and are expected to receive their ballots by 5 August, with a final result to be announced on 5 September.
The FTSE opened in the red down 0.55% since London open.EURThe ECB meets today, and is set to hike for the first time in over a decade – markets are certain it will hike 25bps however some recent commentary has lead investors to think 50bps is also on the table. Investors will focus on Lagarde’s commentary and any further hints on a September hike, and the size.
Italy is thrown into political chaos as Draghi resigns as PM. Following yesterday's setback in which three coalition parties refused to back him, the Premier decided to step down. Italian bonds and stocks declined on the news.European stocks decline with the Eurostoxx, CAC and DAX dipping 0.39%, 0.28% and 0.51% since the open.
EURUSD has been mixed this week reaching highs of 1.0273 yesterday and has since dipped to trade at 1.0180 in the build up to this afternoons decision.USD
Joe Biden hopes to speak to Xi Jinping of China, in the coming weeks, as the US considers lifting some tariffs on Chinese imports.
US stocks rallied with the Dow Jones, S&P and NASDAQ gaining 0.15%, 0.59% and 1.58%.ASIA/PACIFIC
Tesla, who revealed they had a major investment in Bitcoin, has now sold off most of its holdings. Bitcoin trades as just below $23,000.
Asian stocks were mixed with the Nikkei rallying 0.44% whilst the Hang Seng and CSA dipping 1.51% and 1.11% respectively.ILSUSDILS has reached highs of 3.4601 and lows of 3.4281 this week.
The number of job vacancies decreased in June amid an increase in the number of employees.Data & Events
UK - June public finances, BOE's Pill speaks
France - July business confidence
Eurozone – ECB Rate Decision
US - weekly jobless claims
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