Nearly a winner
Today's news headlines:
'Joe Biden on cusp of pair of legislative wins ahead of midterm elections'. It looks like US President Joe Biden might just get two big wins before the mid-term elections in the form of a $280bn support bill for the US semiconductor industry and a comprehensive package for green initiatives and energy reform. The latter is a particular surprise because it was opposed by Senator Joe Manchin, who seems to have reversed his stance. (Financial Times)
'Xi warns Biden not to 'play with fire' ahead of Pelosi's potential Taiwan trip'. It seems the recent conversation between President Biden and Premier Xi was a lot of dancing around the issue of Nancy Pelosi's planned trip to Taiwan. Understandably, neither side wishes to knuckle under, so each issues vague assurances followed by vague threats about their adherence to the One China policy first set out in 1972. (Financial Times)
The USD Index has continued to trend lower into this morning's open. While the trade-weighted Pound makes minor gains, Euro remains in the doldrums. We've already seen GDP upside in France, so we're waiting for the region-wide reading at 10AM. US inflation—the Fed's preferred measure at that—is also key given policymakers' dogged pursuit of inflation.
Japanese preliminary Industrial Production m/m: 8.9% vs -7.5% last month
Japanese Retail Sales y/y: 1.5% vs 3.7% last month
French flash Gross Domestic Product q/q: 0.5% vs -0.2% last quarter
Eurozone Consumer Price Index flash estimate y/y: 10:00AM
US Core Personal Consumption Expenditures Price Index m/m: 1:30PM
US Chicago Purchasing Managers' Index: 2:45PM
GBP/USD – 1.2225
GBP/EUR – 1.1940
EUR/USD – 1.0230
USD/CAD – 1.2800
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