top of page
  • richard evans

US spy chief meets Russian counterpart

Good morning

US dollar weakness continues despite comments from Fed Brainard yesterday suggesting the Fed has done a lot, but still has a lot more to do. ECBs de Guindos said inflation will be high for some time and ECB will move rates into restrictive territory. EURUSD has moved higher this morning, trading to 1.0410, GBPUSD is up at 1.1830. GBP is lagging against the EUR, the pair now towards the lower end of recent ranges at 1.1375.

Biden met with Xi yesterday, it was reported the meeting went well with both sides seeing the need for peaceful resolutions to disputes, the world being big enough for both countries to prosper. Nothing concrete really came from it but considering such little progress had been expected, the rather friendly nature of the meeting came as a pleasant surprise. Shares in China and Hong Kong were positive overnight, Hang Seng up a healthy 4%. Xi seems to be looking to rebuild relationships, a meeting is planned with Xi and Aussie PM Albanese, the first such meeting in six years. However we know better than to think China is interested in anything other than its own interests. Sunak though has said China poses a systemic challenge to our values and economic security. It is great that there seems to be less confrontation but lets not fool ourselves.

Zelensky used his speech meeting to demand an end to Russian hostilities. He thanked other nations, including China, for making it clear nuclear threats were unacceptable. Meanwhile US and Russian spy chiefs have met in Turkey. The US made it clear these were not war/peace negotiations, that would not happen without Ukraine. Nuclear threats were apparently discussed, as was the issue of US citizens detained in Russia, such as the basketball player Brittney Griner who is currently serving nine years in a Russian penal colony for possession of cannabis oil. She broke the law but it is thought she is being used as a political pawn.

UK employment data this morning showed a rise in claimants and a rise in the unemployment rate, GBP largely shrugged off the disappointing numbers. Early tomorrow morning we have UK inflation numbers, again expected to show a rise from previous readings. Headlines YoY looking at 10.6% from 10.1% last time with MoM looking at 1.7%.

- 10.00 EU GDP

- 10.00 German ZEW

- 13.30 US PPI

- 14.00 Feds Cook speaks

- 17.30 ECBs Elderson speaks

- 07.00 UK CPI, RPI, PPI

1 view0 comments

Recent Posts

See All


bottom of page