Market Information Tuesday 1 November 2022

Whereas last week the euro was above parity with the dollar, on Monday the euro exchange rate was lower than the dollar. The reason for the short rebound of the European currency was speculation, that the Federal Reserve is going to change policy, switching from large to smaller interest rate steps.

The war in Ukraine and uncertainty surrounding the election results in Brazil are causing prices of many commodities to rise. The prices of coffee, corn and sugar were a few percent higher on Monday, corn was an outlier with a plus of 6%. This huge increase in grain prices was mainly caused by the halt of grain exports from Ukraine across the Black Sea on Sunday.

There is a slowdown in growth in the European economy. Gross domestic product in the third quarter grew slightly by 0.2 percent on a quarterly basis. In the second quarter, growth was still 0.8 percent. On an annual basis, the eurozone economy grew by 2.1 percent in the third quarter, which is sharply less than the 4.3 percent in the second quarter.

The 6M Euribor decreased with 9 basis points to 2.03% compared to previous business day. The 10Y Swap increased with 5 basis points to 3.03% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.