Daily Market Update 12/12/2022

Yesterday’s Overview

• US PPI inflation came in higher than expected, adding to the case that perhaps tomorrow’s core Inflation figure from the US may come in higher. The USD initially gained off the data, but gains were swiftly erased by the end of the day.

• GBP in general had a very solid day, only finishing lower against commodity currencies, AUD and NZD.

Today’s Overview

UK GDP for December overshot expectations showing that the economy grew by 0.5% in December and giving hope that a UK recession will not be as severe as initially feared.

It’s a busy economic calendar this week with inflation figures out from Europe, UK and the US, Alongside interest rate decisions from the US, EU, UK, Switzerland and Norway.

So, volatility is expected this week and outcomes of the decisions along with the accompanying rate statement are likely to dictate moves going into the festive period as well as the themes for 2023.

October’s inflation figures from the US directed FX moves throughout November and this month. Tomorrow’s CPI print for November will be of keen focus to dictate whether the fall in inflation in October was a one-off of whether we have peaked in inflation.  

Wages in November and Friday’s producer price inflation figures came in higher, does this dictate that core CPI for November will come in higher? If so, then we would expect the USD to recover its losses.

Equals Market Analysis– 12th December 2022

Today’s Market Rates

Today’s Interbank Rates at 09:19 am against sterling movement.

GBP>EUR – 1.1624

GBP>USD – 1.2259

EUR>USD – 1.0547

GBP>CAD – 1.6751

GBP>AUD – 1.8082

GBP>SEK – 12.648

GBP>AED – 4.5026

GBP>HKD – 9.5250

GBP>ZAR – 21.377

GBP>CHF – 1.1450

Today’s Highlights

·        CAD      BoC’s Governor Macklem speech


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