Daily Market Update 02/11/2022

“The Federal Reserve is due to raise its benchmark policy rate by 0.75 percentage points today, as it continues its long-running battle to bring down persistently high US inflation. Nevertheless, economists warn that the implementation of the fourth 0.75 percentage means a more severe downturn on the economy.”

Main Headlines

Katherine Tai, the Biden administration’s most senior trade official, has called on the EU to introduce subsidies as she offered a trenchant defence of the US’s bumper green energy package that critics say unfairly supports its own manufacturers. The White House’s Inflation Reduction Act offered subsidies and tax credits for US-manufactured products ranging from solar panels to electric vehicles. Tai’s counterparts in the EU and other US allies have hit out at the act, claiming it contravenes World Trade Organization rules and risks robbing them of investment in green technologies.

UK government emissions data are so poorly reported that parliament cannot assess whether the public sector is on track to meet its decarbonisation targets, a high-profile group of MPs warned on Wednesday. In a highly critical report just days before the COP27 climate summit, the House of Commons public accounts committee said the reporting of greenhouse gas emissions by Whitehall departments was substandard and “inconsistent.” It added that the government’s promise to “lead by example” on achieving net zero greenhouse gas emissions by 2050 was not being met.


Stocks finished lower as data showing a solid US labour market bolstered speculation that Federal Reserve policy could remain aggressively tight even with the threat of a recession. At a time when good news is considered bad news when it comes to policy conjectures, the S&P 500 wiped out a rally as the figures highlighted an unexpected rebound in US job openings, which may keep the pressure on the Fed. It was the 26th time in 2022 that the equity gauge erased a gain or loss of at least 1% in one session, the most for any year since the financial crisis. Two-year US yields topped 4.5% after sliding as much as eight basis points earlier in the day.


Sterling is stronger against the dollar and weaker against euro this morning. Rishi Sunak on Tuesday delayed a showdown with the Bank of England, as the government postponed the publication of plans to allow ministers to over-rule City regulators. The UK government has acted unlawfully in implementing its post-Brexit settlement scheme, putting the residency rights of millions of Europeans living in the UK at risk. Britishvolt has secured a lifeline deal that will give the battery start-up enough money to last until early December, pulling the business back from the brink of bankruptcy.


Euro is well bid against most major currencies overnight. Russia is concerned about its security and the obstacles it faces exporting fertiliser and grains, Turkish Foreign Minister Mevlu Cavusoglu said this morning, days after Moscow suspended its participation in an UN-brokered export deal. Polish deep-tech company Nevomo has received investment from the EU to accelerate the roll-out of its hyperloop-inspired railway technology in Europe. Denmark’s centre-left PM, Mette Frederiksen, has secured the slimmest of majorities in the country’s parliamentary election but will struggle to form a viable government coalition.


The dollar is weaker than most major currencies in the early morning trade. US markets are in line to deliver their worst performance since 1937 in terms of the return on a 60/40 equity/bond portfolio, yet US-listed ETFs are on track for the second-highest full-year inflows on record. A growing number of economists have warned that the Federal Reserve’s fight against inflation, which remains at the highest level in decades, could lead to a severe recession in the US. Oil prices rose on Wednesday after industry data showed a surprise drop in US crude stocks, suggesting demand is holding up despite steep interest rate hikes dampening global growth.

Ballinger & Co. Market Analysis– 02nd November 2022

Today’s Market Rates

Today’s Interbank Rates at 09:44 am against sterling movement.

GBP>EUR – 1.1616

GBP>USD – 1.1495

EUR>USD – 0.9896

GBP>CAD – 1.5632

GBP>AUD – 1.7896

GBP>SEK – 12.658

GBP>AED – 4.2212

GBP>HKD – 9.0240

GBP>ZAR – 20.830

GBP>CHF – 1.1460

  Today’s Calendar 

·        8:00 a.m.: Germany Sept. trade balance

·        9:00 a.m.: Poland Oct. manufacturing PMI

·        9:15 a.m.: Spain Oct. manufacturing PMI

·        9:45 a.m.: Italy Oct. manufacturing PMI

·        9:50 a.m.: France Oct. manufacturing PMI

·        9:55 a.m.: Germany Oct. manufacturing PMI, unemployment

·        10:00 a.m.: Euro-Area Oct. Manufacturing PMI

·        10:00 a.m.: ECB’s Makhlouf speaks

·        1:15 p.m.: US Oct. ADP employment change

·        3:00 p.m.: ECB’s Villeroy speaks

·        5:00 p.m.: Russia Sept. retail sales, unemployment

·        7:00 p.m.: US Fed rate decision

·        7:00 p.m.: ECB’s Nagel speaks

·        Bank of Ireland’s Financial System Conference


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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