Today's news headlines:
‘Sunak has weak hand on strikes and should settle, economists say’. Following the announcement of further train strikes around the Christmas period, there have been calls on the government to resolve the trade union dispute. Economists predict a greater drag on the economy if strikes persist into 2023, exacerbating supply chain disruptions and worker shortages the country is already facing. Public sector wages, it’s thought, will experience a significant improvement in the next two years, but whether these will come in time to stem a general rise in the cost of living remains to be seen. (Bloomberg)
‘China eases curbs in major shift from Covid zero policy’. China began it’s first steps away from Covid zero measures on Wednesday allowing people to quarantine from home rather than designated camps. Restrictions on a green health code to enter venues such as bars and restaurants has also been abandoned. The hope is that the removal of these aggressive restrictions could help to reignite the Chinese economy, but not without a fresh wave of Covid infections as the move to normality gathers pace. (Bloomberg)
Stocks are lower across the board in early trading as markets weigh the impact of easing Covid restrictions on China’s economy. UK house prices fell at a record pace in November, the sharpest decline since 2008. The Dollar is flat this morning as sovereign bond yields decline.
Australia GDP QoQ (Q3 2022): 0.6% (est. 0.7%)
German Industrial Production MoM (Oct): -0.1% (est. -0.6%)
Switzerland Unemployment Rate (Nov): 2.0% (est. 2.1%)
Bank of Canada Interest Rate Statement: 3:00PM
US Crude Oil Inventories: 3:30PM
GBP/USD – 1.2137
GBP/EUR – 1.1606
EUR/USD – 1.0458
USD/CAD – 1.3665
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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.