The US Federal Reserve has flagged the need for more “super sized” rate rises and a hard landing for the US economy now seems inevitable.
From money to post boxes and bottles of tomato sauce,Queen Elizabeth II’s image is everywhere. It will be expensive to overhaul but there is a silver lining of sorts.
The US no longer dominates the world economy the way it once did,but its currency still does.
Too big a currency shock risks undermining and destabilising a global economy that is yet to fully come to grips with the consequences of declining growth and high inflation.
China is doing everything it can to prop up its currency as it tries to avoid external sources of instability adding to its domestic woes.
The eurozone is already hurting and conditions are worsening as the fallout from the Russian invasion of Ukraine and Europe’s own economic challenges coincide.
The Reserve Bank of Australia will trial a digital currency as part of a collaborative research project into how it could be used by consumers and businesses.
Italy’s woes and Germany’s over-reliance on Russian gas are threatening to devastate Europe and tear it apart. This is the week that could shape its fate.
The Federal Reserve Board’s likely aggressive response to America’s searing inflation rate will further boost the US dollar and step up the pressure on other central banks to respond.
The one-to-one exchange rate is a sight unseen since December 2002,in the early years of the European currency’s existence.
The US yield curve has inverted,flashing a warning of a looming recession. The surge in the value of the US dollar means it will probably be global.