Macro Briefing: 21 October 2022

* UK Prime Minister Liz Truss quits but political and economic turmoil will persist
* High inflation is raising political risk for governments in Europe
* 10-year US Treasury yield on track for 12th straight weekly increase
* US home sales continue to fall, dropping for eighth straight month in September
* Philly Fed Manufacturing Index continued to signal sector weakness in October
* US jobless claims fell last week, indicating tight labor market persists
* Leading Economic Index fell again in September, reflecting rising recession risk:

US dollar looks set to strengthen further, predict analysts at Nordea, a bank. “Yields continue with their relentless rise and USD strength is not abating. Lately, unilateral FX intervention has made a comeback. Is global intervention on the cards to weaken the USD? We don’t think so and see an even stronger USD ahead.”