Daily Market Update 18/11/2021

Main Headlines:

President Biden called on the Federal Trade Commission to investigate whether oil-and-gas companies are participating in illegal conduct aimed at keeping gasoline prices high, in the latest effort by the White House to respond to public concerns about costs for everything from fuel to groceries. In a letter to FTC chair Lina Khan, Biden said there was “mounting evidence of anti-consumer behaviour” in the market, noting that the two “largest oil and gas companies . . . as measured by market capitalisation” were planning “billions of dollars of stock buybacks and dividends” even as prices at the pump continue to rise.

Boris Johnson will on Thursday unveil £96bn of investment in rail links to boost northern England but the watered down plans risk inciting the wrath of MPs in the region. When he announces a new Integrated Rail Plan, the prime minister will confirm cuts to the north-south High Speed 2 and the High Speed 3 line from Leeds to Manchester. Johnson will insist it amounts to the “biggest ever public investment in Britain’s rail network”. The government is going ahead with building the western leg of High Speed 2 from London to Manchester via Birmingham, but an eastern leg from Birmingham to Leeds is now being slashed.

Markets

GBP

Sterling is higher against most major currencies this morning. The venture capital arm of the state-owned British Business Bank, British Patient Capital, has acquired its first direct stakes in a range of UK start-ups, adding to a growing portfolio of investments made by the government to support companies during and after the pandemic. MPs have voted to ban themselves from working as paid political consultants or lobbyists as the row over sleaze continued to dominate British politics on Wednesday. Boris Johnson is considering flying a crate of cash to Iran to settle British debts with Tehran and help secure the release of the UK-Iranian detainee Nazanin Zaghari-Ratcliffe.

EUR

The euro is higher versus the dollar and lower against the pound overnight. EU lawmakers have reached a breakthrough on how to target tech companies, including Apple and Google, as part of moves by Brussels to curb anti-competitive practices in the digital economy. Companies with a market capitalisation of at least €80bn and offering at least one internet service, such as online search, will be drawn into the planned Digital Markets Act. Ireland, Slovakia and the Czech Republic are set to introduce new Covid-19 restrictions in the coming days.

USD

The dollar is weaker against most majors in the early morning trade. Federal Reserve Vice Chair Richard Clarida said the “necessary conditions” to raise the US central bank’s benchmark lending rate from near zero will probably be in place at the end of next year. More Wall Street banks are now betting that the Fed will hike rates at a faster-than-expected pace, with Citi joining Morgan Stanley in backing trades that will profit if the central bank does just that. Economists have warned that Biden’s $2 trillion tax and spending bill will act to push up inflation further if passed by Congress.

Ballinger & Co. Morning Report–18th November 2021

Today’s Rates

GBP>EUR – 1.1918

GBP>USD – 1.3504

EUR>USD – 1.1329

GBP>CAD – 1.7026

GBP>AUD – 1.8540

GBP>SEK – 11.971

GBP>AED – 4.9580

GBP>HKD – 10.515

GBP>ZAR – 20.941

GBP>CHF – 1.2533

Today’s Calendar           

·       EUR    ECB’s Panetta speech

·       USD    Philadelphia Fed Manufacturing Survey(Nov)

·       USD    Initial Jobless Claims(Nov 12)

·       USD    Initial Jobless Claims 4-week average(Nov 12)

·       USD    Fed’s Williams speech

·       EUR    ECB’s Lane speech

·       USD    Fed’s Evans speech

·       JPY     National CPI ex Food, Energy (YoY)(Oct)

·       JPY     National CPI ex-Fresh Food (YoY)(Oct)

·       JPY     National Consumer Price Index (YoY)(Oct)

  

Today’s Highlights

·       Forex Today: Dollar retreats alongside yields, risk mood to drive markets

·       EUR/USD Forecast: Euro could extend recovery on improving mood

·       Brexit News: UK’s Frost says N. Ireland Protocol deal ‘can be done’ with EU before Christmas

·       Consumers to the Rescue: US economy improves after the weak third quarter

 (https://frank-exchange.com/)

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited/Manor House Foreign eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.

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