Key Points:
The Euro traded below parity Tuesday against the US Dollar- the first time since December 2002
The Chinese city of Wugang is to be locked down for 3 days – population is just under 1M
The World Health Organisation have identified a new strain of Covid- this is named BA 2.75 and is possibly more transmissible than prior variants
Japan’s finance minister Suzuki has been on the wires expressing concerns for the Japanese Yen and its path of weakness, he said the B0J will act and intervene if they feel they must
US CPI expected to be 8.6% came in at 9.1% the highest since 1980
RBNZ raises interest rate from 2.0% to 2.5% as expected
IMF cuts US GDP growth to 2.3% from 2.9%- 2023 also slashed from 1.7% to 1.0%
We expect the Fed interest rate to reach a peak of 3.5% in February 2023 before cuts start around September to late next year
The US Dollar (USD) is the strongest currency this month (July) while the Euro (EUR) is trading at the weakest.
The Bank of England will hike rates in their August meeting from 1.25% to possibly 1.75%, the BoE governor Bailey is saying inflation will come down a lot in 2023 raising the question of unnecessary over aggressive hikes forecast
The Bank of Canada surprised markets when they raised rates a whole 1% overnight to 2.50% – markets were picking a 75-point move, the BoC highlighting there was more to come