• 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.
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
· CAD BoC’s Governor Macklem speech
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