EUR/USD 1.15571
0.003%
Gold 4127.91
0.294%
Oil 59.655
-0.477%
USD/JPY 154.179
0.036%
GBP/USD 1.31297
-0.341%
GBP/JPY 202.437
-0.294%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On November 11, Guan Peng, deputy director of the Fixed Asset Investment Department of the National Development and Reform Commission, said that as of October 29, all 500 billion yuan of new policy-based financial instruments had been disbursed, with a certain amount allocated to support private investment projects in key areas that meet the criteria, effectively promoting the implementation of these projects.Traders are increasing their bets on a Bank of England rate cut; the market expects a 20 basis point cut in December.On November 11th, economists at Bank of America Securities pointed out that while the Bank of Thailand may continue to cut interest rates, the threshold for such cuts has increased compared to the past. Given the current low inflation and weak recovery, the market has almost fully priced in a December rate cut. However, Bank of America believes that unless subsequent data falls short of expectations, the widely anticipated December rate cut may be delayed. Although the new governor is considered more dovish, he cannot guide the Monetary Policy Committees decisions alone. Economists stated that "the committee continues to maintain a data-driven and consensus-oriented decision-making model" and expect the final policy rate to reach 1%. Bank of America predicts that the Bank of Thailand is more likely to implement a rate cut in the first quarter of 2026.On November 11, Lu Dongsen, Deputy Director of the Digital Economy Department of the National Data Administration, stated that the next steps are: First, to support leading companies in various industries in building comprehensive digital empowerment platforms, enabling SMEs to enter the transformation ecosystem through collaborative transformation across the industrial chain, and achieving tangible transformation benefits in areas such as order acquisition, loan financing, and sales expansion; Second, to leverage the role of third-party service providers such as internet platforms and data companies, cultivating more service providers who understand both industry and digitalization, focusing on maximizing the spillover effects of transformation empowerment, and driving more companies to transform and attracting more investment.Sources say Saudi Arabia and Iraq are also supplying more oil to Indian refiners under optional contracts.

According to Bailey of the BOE, the GBP/USD is under pressure at its two-year low of 1.1900

Alina Haynes

Jul 12, 2022 14:41

截屏2022-07-12 上午9.49.20.png 

 

Following a test of the two-year bottom at 1.1845 the day before, GBP/USD bears tinker with the 1.1900 level during Tuesday's Asian session. Recent losses for the Cable pair may be related to British political developments and concerns of a recession.

 

Following Boris Johnson's ouster, a number of well-known British officials are vying for the presidency, including former chancellor Rishi Sunak, foreign secretary Liz Truss, and current UK finance minister Nadhim Zahawi. Although Brexit is the main element supporting the candidate, tax cuts are being emphasized as the promise to win over supporters.

 

According to a survey of the retail sector, which was released on Tuesday by Reuters, British customers cut down on their purchases for the third month in a row, and sales volumes fell by the most since the COVID-19 outbreak.

 

The Bank of England's Andrew Bailey told Reuters that "the United Kingdom is facing a very substantial real income shock." Due to the nation's economic unease, the news also puts negative pressure on the GBP/USD exchange rate.

 

On a larger scale, fears of an economic downturn were exacerbated by historically high US inflation forecasts and comments from US leaders foreseeing future suffering, which fueled the risk-averse mood and pulled down the GBP/USD currency rate. Despite this, a research by the New York Federal Reserve found that one-year inflation estimates in the US rose to a record high of 6.8 percent in June from 6.6 percent in May. Expectations of Fed aggression, which were earlier reinforced by the most recent US job statistics, are another factor adding to the market doom. While the unemployment rate held stable at 3.6 percent, the US Nonfarm Payrolls (NFP) expanded by 372K in June, above projections of 268K and a downward adjustment of 384K.

 

In this setting, equities continued to decline, while US Treasury rates showed no signs of abating. S&P 500 Futures also keep an eye on Wall Street losses as of publication.

 

For traders of the GBP/USD pair, Governor Bailey of the Bank of England's second round of testimony will be essential. However, risk factors including political events and inflationary concerns will be the major emphasis.


Suggestion