Today's news headlines:

‘Sunak’s Britain is starting to have second thoughts about Brexit’. The gloomy prognosis of the UK economy has reopened the debate over Brexit, more than six years after Britain voted to leave the EU. Reports that Jeremy Hunt has privately said that the nation should seek a closer trading agreement with the bloc has angered senior Tories. But the tone mirrors a shift in public attitudes with a new poll of polls by elections guru Professor John Curtice showing that 57% of Britons reject Brexit. According to the OBR, the UK’s divorce from the EU will reduce GDP by 4% over the longer term, while the trade-weighted Pound has fallen 10.5% since the vote. (Bloomberg)

‘China’s "slow, painful" reopening threatens more economic strain’. Growth in China is likely to suffer in the initial stage of reopening following Covid restrictions, with the potential for deaths among the elderly population who are generally less vaccinated. The government is set for a protracted and costly opening as many households have already depleted their savings, unlike in western countries that saw a release of pent-up demand. Economically important areas have suffered from the gradual reopening, with constant testing hitting productivity levels. (Bloomberg)

Today

Markets were mixed into this morning as investors weighed new comments from Fed officials that the pace of tightening may need to slow while the effects filter through the economy. The US Dollar is a little lower this morning, after a strong trading day yesterday while US Treasuries advanced. 

Events

RBA Gov Lowe Speaks: 8.30AM
Canada Retail and Core Retail Sales: 1.30PM
US Richmond Fed Manufacturing Index: 3.00PM
FOMC Member Mester Speaks: 4.00PM
FOMC Member George Speaks: 7.15PM
FOMC Member Bullard Speaks: 7.45PM

Interbank rates*:

GBP/USD: 1.1849
GBP/EUR: 1.1543
EUR/USD: 1.0266
USD/CAD: 1.3422

 

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.