Daily Market Update 24/08/2022



Sterling posted fresh yearly lows versus the US dollar yesterday, despite a steeply rising UK interest rate environment. Markets are now choosing to ignore higher yields and instead focus on rising stagflation fears.

The prospect of a fiscally stimulative Liz Truss is now also failing to rally sterling as concerns grow over the medium-term economic outlook. With no further economic data scheduled for the rest of week, sterling moves will likely be dictated by the surging US dollar and broader market themes.


The single currency took a further leg down yesterday despite better than expected PMI data. News that the Nordstream 1 gas pipeline will now not close for a 3-day maintenance period also failed to have a positive effect on the euro, as recessionary fears increase ahead of the winter period.


The relentless rise in the US dollar continued yesterday as risk currencies continue to be shunned in favour of the safety of the buck. News that the US Services PMI surprisingly contracted in August failed to make a telling dent in the currency, as markets await Fed Chair Powell’s key testimony at the Jackson Hole symposium on Friday. Given the almost unprecedented year-to-date dollar strength and extreme market positioning, the bar is set very high for further dollar appreciation following the testimony, and any hint of a pause in the current acute rate tightening cycle would see a steep sell-off in the currency.

Equals. Morning Report- 24th August 2022

Market Rates

Today’s Interbank Rates at 09:17 am against sterling movement.

GBP>EUR – 1.1887

GBP>USD – 1.1825

EUR>USD – 0.9950

GBP>CAD – 1.5337

GBP>AUD – 1.7087

GBP>SEK – 12.602

GBP>AED – 4.3437

GBP>HKD – 9.2790

GBP>ZAR – 20.158

GBP>CHF – 1.1387

  Today’s Calendar           

·       12:30    USD      Durable Goods Orders(Jul)

·       12:30    USD      Nondefense Capital Goods Orders ex Aircraft(Jul)

·       22:45    NZD      Retail Sales (QoQ)(Q2)


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