The USD slightly higher, oil price higher, equity and US bond yield are lower. Market participants' focus will be on the FOMC minutes set to be release later this morning and Friday's employment report. Expectation remains that the Fed will raise rates by 50 bps by year end and a growing number of participants expect a 25bps hike in July. No economic data set to be released in Canada until Friday's employment report. ECB's Visco said in a statement earlier today that 'more rate hikes are not the only way to curb inflation' while his colleague Nagel said that the ECB has not reached the end of the policy-tightening cycle yet.
In other news Saudi Arabia says new oil cuts shows teamwork with Russia is strong. In his first public meeting since the uprising last month, Putin thanked his colleagues from the Shanghai Cooperation Organization countries for their support. According to the Russian foreign ministry there are no grounds to renew the UN negotiated Black Sea grain deal.
In the currency markets The USD has strengthen this morning against all APAC currencies. Leading the way is the AUD and CNY both down 0.42%, while the TWD is down 0.25%. Other notable currency movement this morning is the appreciation of the USD against ZAR 0.7%, SEK 0.52, NOK 0.8%.
The USD/CAD cautiously regains some positive traction this morning as we await the FOMC minutes later today. Last week softer Canadian inflation numbers which recorded a 2 year low still causing headwind for the C$.
EURCAD regained most of yesterday's loss hovering around the mid 1.4400.
The ECB's efforts to combat inflation and normalize their monetary policies continue to be a subject of ongoing debate, as speculations about an economic slowdown on both sides of the Atlantic continue to grow. Shifting focus to the Euro Area, the final figures reveal the HCOB Services PMI for Germany at 54.1 and for the broader Eurozone at 52.0, both recorded in June. Additionally, Producer Prices for the Euro bloc contracted 1.9% MoM in May and 1.5% vs. the same month of 2022.
EUR/GBP has faced pressure as UK Services PMI has matched expectations. Labor shortage caused by Brexit and early retirements are affecting the UK economy.
GBP remains vulnerable as inflation is expected to rebound as labor shortage is expected to increase. Financial markets are anticipating that the BoE will eventually raise interest rates to 6.25% from the current state of 5%
For clients based in the European Economic Area, payment services for Payments International Inc. are provided by CurrencyCloud B.V..Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam.CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (RelationNumber: R142701).
Payment services in the United States are provided by Visa Global Services Inc. (VGSI), a licensed money transmitter (NMLS ID 181032) in the states listed here. VGSI is licensed as a money transmitter by the New York Department of Financial Services. Mailing address: 900 Metro Center Blvd, Mailstop 1Z, Foster City, CA 94404. VGSI is also a registered Money Services Business (“MSB”) with FinCEN and a registered Foreign MSB with FINTRAC. For live customer support contact VGSI at (888) 733-0041.
For clients based in the United Kingdom and rest of the world, payment services for Payments International Inc. are provided by The Currency Cloud Limited. .Registered in England and Wales No. 06323311. Registered Office: StewardshipBuilding 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic MoneyRegulations 2011 for the issuing of electronic money (FRN: 900199)
