Oct 13, 2022
VOT Research Desk
Liz Truss, the prime minister of the United Kingdom, wants to implement the mini-budget despite opposition over the £60 billion financing gap.
Truss reaffirmed her refusal to reduce government expenditure despite tax cuts and soaring inflation.
The US Federal Reserve issued the meeting minutes in the middle of the US afternoon. The tight monetary policy would be maintained, policymakers said, in order to curb the high inflation. Officials said that it would be good to maintain the level there for a while if they achieve what they view as a restricted level.
Even though some major central banks made noise on Wednesday, the value of the US dollar ended the day barely altered.
Investors anticipate US inflation statistics, which may offer new insights on the direction the US Federal Reserve may take next.
Andrew Bailey, the Governor of the Bank of England (BOE), was once more featured on the news.
On Wednesday during the most recent emergency program. Early on Wednesday, there were rumors that the central bank may prolong its most recent emergency stimulus program beyond this week.
However, the BOE soon refuted these claims, sending investors back to the US Dollar. Huw Pill, the chief economist at the Bank of England, later stated that he anticipated the need for a “strong” monetary policy reaction in November.
While the GBP/USD pair has been a little bit more erratic, closing the day at about 1.1100, the EUR/USD pair is still steady at approximately 0.9700. While the AUD/USD is up to 0.6280, the USD/CAD is now trading at 1.3810.
The Japanese yen fell sharply against the dollar, with the USD/JPY pair rising to a new multi-decade high of 146.96 while continuing to rise because the Bank of Japan chose not to intervene.
While crude oil prices continued to decline, gold edged up and is currently trading about $1,675 per troy ounce. Currently, WTI is $87.20 a barrel.
