Stocks declined on recession worries. Market's brace for another Fed hike on Wednesday
July 25, 2022
GBP/USD 1.1983 GBP/EUR 1.1754 EUR/USD 1.0195 USD/CAD 1.2924 EUR/CHF 0.98337 EUR/SEK 10.4141 EUR/NOK 10.1397 EUR/DKK 7.4442 USD/ILS 3.449 AUD/USD 0.692 NZD/USD 0.6242 USD/SGD 1.3869 USD/JPY 136.38 USD/CNH 6.7571 USD/INR 79.8375 EUR/ILS 3.516 GBP/ILS 4.1285 USD/ZAR 16.8378
GBPUK Conservative leadership candidates Rishi Sunak and Liz Truss hold their first head-to-head TV debate today. They will likely be debating on issues such as illegal immigration, national security and the economy.
Cable trades down, on Friday's highs, sitting in the 1.1990 region as we print. GBPUSD may test the 1.21 handle again this week, should the Fed stick to its plan to steer interest rates toward a “modestly restrictive level” by year-end.
UK stocks open down 0.26%.EURGoverning Council member Martins Kazaks, stated that the ECB may not be done with their big hikes.
European governments are trying to water down the EU's plan to cut gas demand, with France looking to increase subsidy on fuel prices whilst Germany will put pressure on industrial companies to cut use.
Euro CPI data, which will be released on Friday is expected to have accelerated a record 8.7% in June, while the core ticked up to 3.9%.
The Euro Stoxx, CAC and DAX have dropped 0.24%, 0.2%, 0.29% since the open.USDMarket's are preparing for the Fed's next hike Wednesday, with the central bank aiming to try and tame inflation. Janet Yellen doesn't expect any signs of recession. Policy makers are expected to deliver a second straight 75-bp hike. The central bank however, may also discuss the recent loss of economic momentum and indicate 50 bps in September.
Dollars were sold widely to the benefit of riskier currencies last week after a measure of long-term U.S. inflation expectations fell and Fed policymakers appeared to push back against the notion that a 1% interest rate rise might be likely this Wednesday.
US GDP will print Thursday, experts expect annualized growth of 0.5%.ASIA/PACIFICAsian stocks fell as global recession fears mount - the Nikkei, Hang Seng and CSA dropped 0.77%, 0.36% and 0.60% respectively this morning.
Oil fell as concerns about an economic slowdown overshadowed signs of a tight market.ILSUSDILS was mixed over last week's trading reaching highs of 3.4611 and lows of 3.4286.Data & EventsGerman - July IFO survey
UK - July CBI trends total orders
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