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On April 9th, US President Trump stated on social media, "NATO wasnt there when we needed them, and they wont be there if we need them again. Remember Greenland, that poorly managed ice sheet." This followed a meeting between President Trump and NATO Secretary General Rutte, who spent over 90 minutes at the White House. Rutte later stated that he had a very frank and open discussion with President Trump, describing it as a discussion between two good friends, and expressed great admiration for Trumps leadership.April 9th - Singaporean government agencies will implement measures to reduce electricity consumption and enhance energy resilience due to global energy supply shortages caused by the Middle East conflict. The National Environment Agency stated in a statement on Wednesday that immediate measures include setting air conditioning temperatures to 25 degrees Celsius or higher, controlling the operating hours of air conditioners, lighting, and elevators, and unplugging or turning off non-essential equipment when not in use. Singapore had previously warned that fuel prices are expected to remain high for the foreseeable future due to widespread disruptions to Middle Eastern oil and gas production and transportation, leading to higher electricity bills in the coming months.Venezuelan Acting President Rodriguez: The urgent task is to raise workers wages through the development of oil and mining.April 9th - US President Trumps Iran peace plan is facing resistance from a key group: the oil industry. An industry consultant stated that oil company executives are contacting the White House, Secretary of State Rubio, and Vice President Vance to protest allowing Iran to collect tolls on passage through the Strait of Hormuz as a condition for peace negotiations. When asked if the executives had contacted the White House to protest the toll policy, the consultant replied, "Of course! We never needed to do that before—and I think weve already won the war. Whenever you have access to government, you ask, What are you thinking?"1. All three major U.S. stock indexes closed higher. The Dow Jones Industrial Average rose 2.85% to 47,909.92 points, the S&P 500 rose 2.51% to 6,782.81 points, and the Nasdaq Composite rose 2.8% to 22,635 points. Sherwin-Williams rose nearly 7%, and Caterpillar rose more than 6%, leading the Dow. The Wind U.S. Tech Big Seven Index rose 2.49%, Facebook rose more than 6%, and Google rose nearly 4%. The Nasdaq China Golden Dragon Index rose 3.05%, Pony.ai rose more than 11%, and Hesai Technology rose more than 8%. 2. All three major European stock indexes closed higher. The German DAX rose 5.06% to 24,080.63 points, the French CAC40 rose 4.49% to 8,263.87 points, and the UK FTSE 100 rose 2.51% to 10,608.88 points. 3. Most US Treasury yields fell. The 2-year Treasury yield fell 0.02 basis points to 3.790%, the 3-year Treasury yield fell 0.06 basis points to 3.811%, the 5-year Treasury yield fell 0.18 basis points to 3.924%, the 10-year Treasury yield fell 0.20 basis points to 4.293%, and the 30-year Treasury yield rose 1.42 basis points to 4.886%. 4. The most active US crude oil futures contract closed down 14.56% at $96.5 per barrel; the most active Brent crude oil futures contract fell 11.5% to $96.7 per barrel. 5. International precious metals futures generally closed higher. COMEX gold futures rose 1.29% to $4745.00 per ounce, and COMEX silver futures rose 3.14% to $74.25 per ounce. 6. Most domestic commodity futures markets closed lower, with energy products, chemicals, and shipping futures leading the declines. Low-sulfur fuel oil fell 15.26%, LPG hit the daily limit down, asphalt fell 8.95%, and the container shipping index (European route) fell 7.42%. Precious metals and base metals rose, with Shanghai silver rising 5.63% and Shanghai tin rising 4.05%.

EUR/GBP Rebounds to Near 0.8420 Ahead of the Bank of England's Policy Statement

Alina Haynes

May 05, 2022 10:09

After a substantial sell-off from 0.8450, the EUR/GBP pair has found some bids near 0.8400. The cross attempted many times to sustain above 0.8440 but was unable to do so, dragging the asset lower to the round level support of 0.8400.

 

Pound bulls are awaiting the Bank of England's (BOE) statement of monetary policy during the London session. Interest rates are scheduled to be increased by 25 basis points by BOE Governor Andrew Bailey (bps). The UK's Consumer Price Index (CPI) reading of 7% represents a slew of inconveniences for households, as rising energy costs and food prices have already lowered households' actual income. Notably, the BOE increased policy rates by 50 basis points at its most recent monetary policy meeting. The BOE is maintaining its usual hawkish approach this time around, believing that a gradual increase would be the best course of action to avoid a significant impact on the economy.

 

Meanwhile, the euro bulls' position is likely to remain shaky, as the European Union has stated its intention to ban Russian oil within six months. The EU is determined to wean itself from Russian oil following Russia's invasion of Ukraine. It would be interesting to see how the EU will meet its record daily demand of 3.5 million barrels without Russian oil.

 

Apart from that, the euro's demand has been damaged by the underperformance of Euro Retail Sales announced on Wednesday. Retail Sales came in at 0.8 percent behind market expectations of 1.4 percent and 5.2 percent, respectively. 

EUR/GBP

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