Today's news headlines:
'Fruit and vegetable shortages push UK food inflation to record high'.
Annual food inflation has accelerated to 15%, which is the highest level since 2005. Reduced supply is attributed to weak growing conditions in North Africa and Europe, while a weaker Pound is weighing on alternative imports and energy prices on domestic green-house-grown produce. (Financial Times)
'"Injured and hurting'" Israel roiled as Netanyahu is forced to retreat'.
Following bribery and fraud indictments, an increasingly ultra-right-wing Benjamin Netanyahu, Israel's longest-serving Prime Minister, has been seeking to force 'judicial reforms'. After intense protests – including military trainees – the pressure was too great, and he was forced to scrub his plans. (Financial Times)
Sterling has been appreciating for the second session in a row; the Dollar is nudging slightly lower. US treasury yields experienced a reasonable rally yesterday, moving the two-year to 4%. Yesterday's enthusiasm included a pop in Brent Crude, which has been plumbing lows for the past two weeks. BoE Governor Bailey spoke yesterday, reaffirming the need to tackle inflation and said the MPC can pursue that objective and still remain responsive to any market dislocations. Several central bank speakers this afternoon are the focus of our day.
UK BRC Shop Price Index y/y: 8.9% vs 8.4% last month
JP BOJ Core CPI y/y: 2.7% vs 3.1% last month
UK BOE Gov Bailey Speaks: 9:45 AM
EU ECB President Lagarde Speaks: 2:00 PM
EU German Buba President Nagel Speaks: 2:00 PM
US CB Consumer Confidence: 3:00 PM
US Richmond Manufacturing Index: 3:00 PM
US FOMC Member Barr Speaks: 3:00 PM
GBP/USD – 1.2325
GBP/EUR – 1.1380
EUR/USD – 1.0830
USD/CAD – 1.3635
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.