FX News

FX Update

Key Points:

Fed’s Powell came out hawkish at this morning’s Federal Reserve policy meeting with the greenback broadly rallying off the back of his statement. Markets have since called his bluff with the big dollar back at pre-Fed levels.
Airlines around the world are reporting softer demand post covid opening as consumers consider personal spending
A German recession is now predicted to be milder than expected
Forecast modelling in China suggest economic growth in 2023 is not going to be as bad as initially predicted
The RBA should hike interest rates by 25 points at each of the next two meetings, their next release is 7 February
UK Inflation 10.7% vs 10.9% predicted year on year as pressures on interest rates continue to ease, the Bank of England may be less aggressive going forward
Russia has said “no” to a Christmas ceasefire as Kyiv woke to air raids this week as the city was attacked by Iranian made drones.
The British Pound (GBP) has been the strongest currency over the month of December thus far with the Canadian Dollar (CAD) the weakest performer.

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