Key Points:
• Sterling trades at new 2023 highs vs the euro
• ECB warn inflation still has “a lot of momentum”
• Yellen warns US Treasury will run out of cash by 1st June
Recap:
Trading was very quiet yesterday as the UK enjoyed the additional Coronation bank holiday, and with no major economic data releases, the currency markets remained in a very tight range. The Fed released its latest banking conditions survey which showed an increased tightening in lending standards and economic slowdown concerns along with deposit outflows as the recent banking crisis takes hold.
Markets
Markets are likely to once again trade in a narrow range today ahead of tomorrow’s key US inflation report where a slight fall in the annual Core rate from 5.6% to 5.5% is expected. With the clock ticking on the US debt ceiling, US President Joe Biden is due to meet later today with Congressional leaders as lawmakers try to break a stalemate over how to increase the borrowing limit and try and thrash out a deal. Over the weekend US Treasury Secretary Yellen warned failure to reach an agreement would lead to a steep economic slowdown.
Sterling continues to inch higher against the euro ahead of Thursday’s Bank of England MPC meeting where interest rates are expected to be raised by 0.25% from 4.25% to 4.5%.
Equals Market Analysis– 09th May 2023
Today’s Market Rates
Today’s Interbank Rates at 09:53 am against GBP movement.
GBP>EUR – 1.1482
GBP>USD – 1.2606
EUR>USD – 1.0977
GBP>CAD – 1.6861
GBP>AUD – 1.8649
GBP>SEK – 12.824
GBP>AED – 4.6280
GBP>HKD – 9.8920
GBP>ZAR – 23.240
GBP>CHF – 1.1250
Today’s Highlights
· 09:30 AUD Budget Release
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 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.