Cautious optimism

Today's news headlines:

'UK consumer confidence ticks up in "sigh of relief" after Truss'. Consumer confidence improved in November as Rishi Sunak's newly formed government appears to be creating some stability. However, this short-term bounce in confidence is unlikely to be maintained with the UK's outlook remaining poor and more bad news likely to come. There seems to be some hope that there will be a boost in retail spending heading into the Christmas period despite the external challenges in the economy. (Bloomberg) 

'UK skews bond sales to help shortage of collateral, DMO says'. The UK Debt Management Office is beginning to favour issuing shorter-term notes as collateral requirements start to distort money markets. With the added support of the Bank of England selling bonds in its quantitative tightening programme, collateral conditions are beginning to improve. (Bloomberg) 


Today

Markets were mixed overnight as Federal Reserve members continued to voice their support for hawkish monetary policy with more interest rate hikes to quash inflation. The Dollar is trading flat this morning while sovereign bond yields climb across the board. Elsewhere, oil is trading back below the $90 handle for the first time since October. 

Events

UK Gfk Consumer Confidence (Nov): -44 (est. -46)
UK Retail Sales MoM (Oct): 0.6% (est. 0.5%)
German Bundesbank President Joachim Nagel speaks: 1:00PM
Monetary Policy Committee member Catherine Mann speaks: 1:15PM
US Existing Home Sales (Oct): 3:00PM


Interbank rates*:

GBP/USD – 1.1899 
GBP/EUR – 1.1490
EUR/USD – 1.0357
USD/CAD – 1.3338 

 

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.