Feeling the pinch

Today's news headlines:

‘UK energy bills soar as benefits fall and inflation curbs consumer spending’. UK energy prices are set to rise by 54% from today as the price cap hike comes into effect. The Office for Budget Responsibility expects real incomes to drop at their fastest pace since the 1950s, as saving rates in the UK fall while people attempt to maintain the same standard of living. As costs begin to mount, it may be unsurprising to see a tightening in consumer spending in the coming months, heightening recession risk. (Financial Times)

‘Russia steadies rouble with harsh capital controls and investment curbs’. The Russian Rouble has recovered over the last month following the invasion of Ukraine after jumping above the 150 level in early March. Europe’s dependence on Russia for energy has kept the currency afloat, trading close to the 82 handle against the Dollar this morning. Citizens have been restricted on how much cash they can transfer out of the country while also being incentivized to hold roubles after interest rates were hiked to 20%. (Financial Times)


Today

Asian markets drifted lower overnight as Shanghai opted to extend its Coronavirus restrictions for an additional 14 days. US markets closed out the first quarter of 2022 lower for the first time since the pandemic began. Oil prices continue their decline, with WTI falling below $100 per barrel while the US Dollar Index is up 0.15% this morning.  

Events

China Caixin Manufacturing Purchasing Managers’ Index: 48.1 (est. 50.0)
Switzerland Consumer Price Index m/m: 0.6% (est. 0.5%)
Eurozone CPI flash estimate y/y: 10:00AM
US Non-Farm Payrolls: 1:30PM
US ISM Manufacturing PMI: 3:00PM

Interbank rates:

GBP/USD – 1.3115
GBP/EUR – 1.1860
EUR/USD – 1.1059
USD/CAD – 1.2524

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.