Russia will slash its gas supplies to Europe to 20% of capacity tomorrow. Truss ahead of Sunak in polls following last nights TV debate
July 26, 2022
GBP/USD 1.2045 GBP/EUR 1.1779 EUR/USD 1.0224 USD/CAD 1.2825 EUR/CHF 0.98625 EUR/SEK 10.4374 EUR/NOK 10.0396 EUR/DKK 7.4445 USD/ILS 3.437 AUD/USD 0.6966 NZD/USD 0.626 USD/SGD 1.3856 USD/JPY 136.58 USD/CNH 6.756 USD/INR 79.75 EUR/ILS 3.5138 GBP/ILS 4.1365 USD/ZAR 16.7559
GBPIt looks like Truss came out on top in the first TV debate, between the final two candidate for UK PM, Liz Truss and Rishi Sunak. The pair slammed each other's economic plans, with Truss stating Sunak would drive the economy into recession, whilst Sunak claimed Truss's planned tax cuts would push up inflation and mortgage rates. A poll released following the debate, showed 47% of Tory voters thought Truss performed better, versus 38% for Sunak.
Ipsos found that voter concern about inflation is at a 40-year high.
The FTSE opens in the green, up 0.58% as we print. Sterling starts the week on the front foot, gaining 0.79% vs USD, and 0.59% vs the EUR, since Monday's London open.EURGazprom (Russia's state owned energy group) will cut its gas flows through its largest Nord Stream 1 pipeline to a fifth of capacity tomorrow, threatening to leave the bloc short of energy as they head into winter. Russia already lowered output by 40% last month.
EU energy ministers meet today in Brussels, to discuss creating a package of measures to secure fuel supplies.
European equities open another day in the red, with Eurostoxx, CAC and DAX trading down 0.13%, 0.16% and 0.28% respectively. The euro however still saw small gains vs the USD, trading up 0.47% vs the USD since Monday's open.USDAfter raising rates in June by the most since 1994, markets are bracing for a further 75 basis-point hike this week, and for policy makers to signal their intention to keep moving higher in the months ahead. Markets are however concerned about how much pain this will induce on the economy. Many analysts believe it will take a recession to ease price pressures significantly.
US stocks were mixed yesterday with the Dow Jones and S&P gaining 0.28% and 0.13% respectively whilst the NASDAQ dropped 0.43%. The USD index trades down around 0.4%.ASIA/PACIFICChina's economic recovery gained momentum in July as business activities resumed and confidence improved.
Asian equities were mixed, with the Nikkei dipping 0.16% whilst the Hang Seng and CSI gained 1.72% and 0.79% respectively.ILS
June saw a moderate improvement in unemployment rate, declining to 3.4% however, whilst the the CBS's monthly (and seasonally adjusted) figure showed a moderate increase in labor participation to 61.0%.
Israeli service exports reached $ 7.024 billion in May - similar to the level observed at the beginning of the year.
USDILS was mixed over yesterday's trading hitting highs of 3.4536 and lows of 3.4289.Data & EventsHungary - central bank rate decision
US - FHFA house price index, consumer confidence, new home sales
EU - ministers emergency meeting on energy
FOMC starts two-day policy meeting
IMF releases world economic outlook update
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