Cable to parity?
Today's news headlines:
'Pound under siege with mounting bets it will drop below $1'. After dropping to a historical low of $1.0350 on Monday, bets on Cable touching parity have ramped up considerably. Chances of the pair hitting parity by the end of the year stand at over 40%. The steady rise in the Dollar over the last year, thanks to widening interest rate differentials and more favourable growth prospects, has driven the majority of the move. Recent developments in UK fiscal policy have been the straw to break the camel's back, driving investors out of UK assets and pushing the Pound to new lows. (Bloomberg)
'Goldman and BlackRock sour on stocks as recession risk rises'. Bearish views have returned to markets as a soft landing looks unlikely in most major economies. The Federal Reserve look set to continue with the hawkish hiking cycle, sapping confidence out of the market and posing a real question for the economic outlook. Strategists at Goldman Sachs and Morgan Stanley have echoed similar themes that the market has not fully priced all downside risks, as recession probabilities climb. (Bloomberg)
Asian shares fell overnight while European and US equity futures rebounded; the Dollar Index has declined in early trade. Bond markets remain tentative, with UK gilts trimming the losses incurred over the last few days. Oil prices are higher this morning, with WTI trading below $78 per barrel.
Federal Reserve Chairman Jerome Powell speaks: 12:30PM
US Durable and Core Durable Goods Orders MoM (Aug): 1:30PM
UK Monetary Policy Committee Member Huw Pill speaks: 2:35PM
US Federal Open Market Committee Member James Bullard speaks: 2:55PM
US Conference Board Consumer Confidence (Sep): 3:00PM
US New Home Sales (Aug): 3:00PM
US Richmond Manufacturing Index (Sep): 3:00PM
GBP/USD – 1.0821
GBP/EUR – 1.1194
EUR/USD – 0.9665
USD/CAD – 1.3647
Please contact your Dealer about any upcoming FX requirements you may have, or call +44 (0)20 3465 8200.
*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.