FX News

FX Update: China Covid Weighs on Risk

Market Overview:

Key Points:

• Further lockdown concerns in China are causing investors to buy the safe-haven USD Dollar this week
• Crude Oil trades at a 2-month low at 80.06
• Hong Kong’s leader John Lee has tested positive 1 day after meeting with Xi Jinping at a summit in Thailand
• Both Australia and New Zealand’s housing markets continue to tank, Australia’s medium house price fall 1.2% in October while NZ is -10.9% lower year on year.
• The IMF are predicting the global economy will get “gloomier” particularly in Europe next year with economic activity expected to contract while inflation remains extremely high
• The British Pound (GBP) was the strongest currency last week while the Australian Dollar (AUD) was the worst performer.

Major Announcements last week:

  • German Economic Sentiment -36.7 vs -50.9 predicted
  • UK CPI y/y 11.1% up from 10.7%
  • Canadian CPI 0.7% vs 0.8% expected m/m
  • US Retail Sales for September 1.3% VS 1.0% forecast
  • Australian Unemployment down to 3.4% from 3.5% in October
  • UK Retail Sales for October comes in at 0.6% vs 0.5% much higher than September’s -1.4
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