Archives of “January 3, 2022” dayrss
- Domestic sight deposits CHF 648.9 bn vs CHF 650.0 bn prior
Prior week’s release can be found here. Little change in terms of overall sight deposits in the past week but the overall trend remains clear that the SNB is continuing to intervene to limit franc strength. Their balance sheet remains bloated and will continue to keep that way in 2022 surely.
A positive takeaway from the report highlights that supply constraints are easing somewhat but they are still persistent. Firms capitalised on that by adding to inventories at the fastest rate recorded by the survey but manufacturing output and overall conditions remain rather stagnant from November levels.
There was also some easing in price pressures but they remain elevated, holding close to the record highs in the survey. Markit notes that:
- President Biden made clear that the United States and its allies and partners will respond decisively if Russia further invades Ukraine
- reaffirmed the United States’ commitment to Ukraine’s sovereignty and territorial integrity
- expressed support for measures to de-escalate tensions
The Turkish Lira has collapsed alongside Erdogan’s misguided economic policies. If you’ve been following along you’ll know he has, for example, been sacking those at the country’s central bank who have stood in his way of lowering interest rates to combat climbing inflation.
The latest from Turkey to kick off the new year:
- natural gas prices have been raised to power plants by 15%
- natural gas prices have been raised by 50% for factories
- electricity prices have been jacked higher by 52% to 130%
All effective as of January 1. Happy New Year.
USD/TRY (weekly candles):