• The JPY was the biggest mover of the day, accelerating its gains across the board with GBPJPY now at the lowest since September. The move came after the Bank of Japan indicated that it is shifting its stance on monetary policy, and joining others in being hawkish.
• Antipodean currencies AUD and NZD were the biggest losers of the day
• Canadian retail sales came in higher than expected to 1.4% versus an expected fall of 0.3%, adding to CAD gains, and causing GBPCAD to drop off March highs.
• US housing data came in mixed, with building permits coming in lower and housing starts higher than expected, but with minimal impact on USD.
Following the buzz of the JPY moves yesterday, this morning there seems to be a sense of calm in markets with the only notable move overnight being continued weakness in NZD. However, it’s worth noting that GBPNZD is still well within the ranges seen over the last month.
The only thing to look out for today is Canada’s inflation. We saw a peak in inflation in June, above 8%, but since we have seen prices ease off to 6.9% in October. As we have seen recently, global inflation does seem to be easing off, so no surprise to see markets are expecting this print to come in slightly weaker as well.
Equals Market Analysis– 21st December 2022
Today’s Market Rates
Today’s Interbank Rates at 10:07 am against sterling movement.
GBP>EUR – 1.1433
GBP>USD – 1.2139
EUR>USD – 1.0616
GBP>CAD – 1.6527
GBP>AUD – 1.8177
GBP>SEK – 12.652
GBP>AED – 4.4567
GBP>HKD – 9.4600
GBP>ZAR – 21.033
GBP>CHF – 1.1243
· CAD BoC Consumer Price Index Core (YoY)(Nov)
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