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Discount factor

Today's news headlines:

‘Powell to set stage for slowing Fed rate hikes amid hawkish tone’. Markets expect Federal Reserve Chairman Jerome Powell to reaffirm the central bank’s stance on smaller rate hikes this week. A 50 basis-point move appears to be the consensus for the December meeting, as US inflation slowed in October. The latest Fed minutes supported this view with a growing feeling among policymakers that now is the time to reduce the pace of interest rate rises. (Bloomberg) 

‘Discounts return on UK homes in latest sign of market turbulence’. According to Zoopla, one in ten homes sold since September has had sale prices cut by more than 5%. Elevated mortgage rates have quelled housing demand and curbed record price rises we have seen over the last 18 months. These are just the first cracks that have emerged in the UK’s property market, with some brokers expecting a 10% decline in housing valuations next year with the gap between agreed and asking prices set to widen. (Bloomberg) 


Today

Stocks are lower across the board this morning following protests in China against the government’s zero Covid policy as uncertainty continues to build in the world’s second-largest economy. US and UK sovereign bond yields are lower this morning while the Dollar trades flat on a trade-weighted basis.

Events

Australia Retail Sales MoM (Oct): -0.2% (est. 0.5%)
UK CBI Realised Sales (Nov): 11:00AM
European Central Bank President Christine Lagarde speaks: 2:00PM
Federal Open Market Committee Member James Bullard speaks: 5:00PM
Federal Open Market Committee Member John Williams speaks: 5:00PM
German Bundesbank President Joachim Nagel speaks: 5:10PM
Japan Unemployment Rate (Oct): 11:30PM
Japan Retail Sales YoY (Oct): 11:50PM


Interbank rates*:

GBP/USD – 1.2075
GBP/EUR – 1.1591
EUR/USD – 1.0422
USD/CAD – 1.3433

 

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.