UK prices continue to soar
Today's news headlines:
'Soaring energy prices drive UK inflation to 41-year high'. Prices in the UK continue their upward spiral as UK inflation hit 11.1% in October, a 41-year high. The print came in much higher than the median estimate of 10.7% among economists as markets still await the first sign that UK inflation has peaked. Energy was the main culprit yet again, with gas prices climbing 37% and electricity jumping another 17%. Looking forward to tomorrow and the Autumn Statement, UK Chancellor Jeremy Hunt is anticipated to announce subsidies to energy bills to take effect in April. (Bloomberg)
'Panic eases over Poland strike as allies query rocket's origin'. After a missile struck a village in Poland on the border of Ukraine, killing two people, all eyes turned to Russia. Many world leaders are urging caution as determining whether this was an accident or an act of aggression still appears to be a difficult task. The running theory is that Ukraine's air defences knocked a Russian missile off course, but it remains to be seen whether this encroachment into NATO territory was indeed intentional. (Bloomberg)
The Dollar Index is 30 basis points lower this morning, failing to catch any real support. Asian markets tipped lower overnight, with European shares teetering amid developments in the Russia-Ukraine conflict. Elsewhere UK gilt yields move higher this morning ahead of the Autumn Statement tomorrow.
UK CPI YoY (Oct): 11.1% (est. 10.7%)
Canada CPI MoM (Oct): 1:30PM
US Retail and Core Retail Sales MoM (Oct): 1:30PM
UK Monetary Policy Report Hearings: 2:15PM
US Industrial Production MoM (Oct): 2:15PM
European Central Bank President Christine Lagarde speaks: 3:00PM
Federal Open Market Committee Member John Williams speaks: 2:50PM
Federal Open Market Committee Member Christopher Waller speaks: 7:35PM
GBP/USD – 1.1874
GBP/EUR – 1.1417
EUR/USD – 1.0399
USD/CAD – 1.3260
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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.