Yen falls following BOJ bond purchase; Biden denies demanding regime change; ECB does not see material risk to stagflation.
March 28, 2022
GBP/USD 1.3143 GBP/EUR 1.2004 EUR/USD 1.0949 USD/CAD 1.2495 EUR/CHF 1.0242 EUR/SEK 10.3850 EUR/NOK 9.4866 EUR/DKK 7.4401 USD/ILS 3.2245 AUD/USD 0.7528 NZD/USD 0.6944 USD/SGD 1.3611 USD/JPY 123.96 USD/CNH 6.3890 USD/INR 76.2588 EUR/ILS 3.5303 GBP/ILS 4.2378 USD/ZAR 14.5990
Rishi Sunak is considering further measures to relieve cost pressures. The Sunday times has reported that the Chancellor may offer a one-time council tax rebate, and aid with fuelling costs.
The UK may reveal its Crypto regulation plans in the coming weeks via an announcement from Rishi Sunak.
GBPUSD trades lower by -0.25% at time of writing.EUR
Lagarde has announced that European data does not currently point to a material risk of stagflation. According to the ECB Chief, Euro-zone output has recovered to pre-pandemic levels, growth has resumed and the labour market is strong, also hinting that net asset purchases may end in the third quarter.
Germany is continuing its re-militarisation and armament modernisation, whilst joining Eastern European NATO members by bolstering a tough stance against Russia.
EURUSD trades -0.25% lower following intraday dollar strength.USD
Joe Biden has denied he is seeking regime change following an apparent call for Putin to be ousted. Since then, US Secretary of State Anthony Blinken has also reiterated that the US and NATO are not seeking regime change.
Inflation and employment data is expected to strengthen the case for larger rate hikes. The PCE report, released Thursday is expected to show that inflation accelerated and that employment figures have improved in March. The gap between five-year and 30-year yields has inverted for the first time since 2006.
The US economy could see a period of slow growth and up-ticking unemployment, whilst avoiding contraction to ease persistent inflation pressures. Some market leaders see this climate as desirable over alternatives.ASIA/PACIFIC
The Japanese Yen has dropped following the BOJs announcement that it will purchase an unlimited amount of 10-year bonds. The central bank has acted to keep rising yields in check.
Chinese industrial profits rose 5% YoY in the Jan-Feb period, up from 4.2% in December. Gains were driven by higher commodities prices.ILSUSDILS currently trades up 0.59% at 3.227, bouncing off lows of 3.206.Data & Events
ECB - Rehn speaks
BOE – Bailey Speaks
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