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Germany July ZEW survey economic sentiment -53.8 vs -38.3 expected

  • Prior -28.0
  • Current conditions -45.8 vs -34.5 expected
  • Prior -27.6

Slight delay in the release by the source. That’s a significant miss as ZEW notes that the combination of concerns about energy supply in Germany, the ECB’s planned rate hikes and further pandemic-related restrictions in China have led to a considerable deterioration in the economic outlook.

ICYMI – World Health Organization (WHO) has identified a new “stealth omicron” strain

An update on this ICYMI, like I did. The WHO says the new strain is feared to be more transmissible and evasive than previous variants.

  • Officially named BA.2.75
  • nicknamed “Centaurus”
  • has been found in 10 countries, including Australia, Canada, Japan, New Zealand, Germany, the United States and the United Kingdom
  • the WHO has not yet labelled it as a variant of concern
  • transmissibility, severity, and potential for immune evasion are currently unknown

Fed’s Bullard in interview with AP: Supports a 75 basis point hike at the July meeting

bullard-wrong
  • Solid US economy can handle rising rates
  • last week’s job reports points to a solid US economy with little sign of a recession on the horizon.
  • Financial markets are flashing signs that an economic downturn could arrive sometime next year
  • now we have lots of inflation, but the question is can we get inflation back to 2% without disrupting the economy
  • does not seem the US has contracted over the first two months of the year
  • Still supports a 75 basis point hike at the July meeting
  • higher rates limit the ability of consumers and businesses to borrow and spend which can cool growth and inflation, but they also carry the risk of tipping the economy into a downturn
  • other measures of the economy, such as broad measures of workers and business incomes, suggests the economy likely expanded in the 1st 6 months of this year
  • businesses added 2.7 million jobs during that time, a robust total that reflects an optimistic outlook among businesses

“Russian dictator Putin could opt to use nukes if Ukraine liberates Kherson”

Yahoo news have posted this, citing

  • Putin will react to attempts to seize Kherson as an existential threat to Russia – as he considers that to be part of Russia already – and would be ready to use nuclear weapons,” Piontkovsky said, quoting Alexei Venediktov, former editor-in-chief, host and co-owner of recently banned Russian radio station Echo of Moscow.

Here is the link if you want to check it out. I’d hate to think this piece is in any way accurate, but am ill-equipped to make such a judgement. And Putin hasn’t exactly come across as stable. So, I’m gonna have to pass it across for ForexLive traders to decide.

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