EUR/USD 1.15678
0.343%
Gold 4376.09
0.578%
Oil 81.485
1.319%
USD/JPY 159.356
-0.090%
GBP/USD 1.35343
0.362%
GBP/JPY 215.682
0.268%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
August 16 - This morning (August 16), Ecuadorian President Daniel Roy-Hilchrist Noboa Asin arrived in Beijing to begin an eight-day visit to China. This is President Noboas first state visit to China.August 16th - It was learned on August 15th local time that authorities in Indiana, USA, stated that the powerful storms and floods that swept across the state this week have resulted in at least five deaths. Over the past week, torrential rains have caused record-high water levels in several rivers, forcing residents to evacuate to higher ground. More than a dozen counties have declared a state of emergency, with the latest damage concentrated along river channels stretching from Hamilton County to the northern suburbs of Indianapolis.The head of Irans Energy Optimization Organization stated that in the first option, gasoline prices would remain unchanged, but the total allocation would be capped at 121 million liters, and refueling stations would be closed once the quota was exhausted. In the second option, the 121 million liters of gasoline produced daily would be allocated to individual vehicles, and anyone wishing to exceed their quota would have to purchase gasoline at free market prices. In the third option, gasoline quotas would be allocated to the public at 30 liters per person per month, and the transfer, purchase, and sale of quotas would be permitted.The head of Irans Energy Optimization Organization stated that, as part of three ongoing proposals to manage Irans gasoline supply, Iran is considering a proposal to allocate 30 liters of gasoline per person per month, with the quota being transferable and tradable.August 16th - Next week, UK consumer prices will be the focus of media attention, while the shortage of AI-powered memory chips and rising energy costs are keeping the Bank of England on high alert. Data to be released on Wednesday is expected to show inflation accelerating for the first time in four months, with a survey of economists showing a median forecast of a 2.9% jump in July. This marks the beginning of an upward trend expected to continue into the second half of the year, ending a period of positive news regarding price pressures. As the impact of the Iran war on prices becomes increasingly apparent – especially given the still strong economic performance – this data could further unsettle Bank of England policymakers. While the inflation outlook is largely dependent on developments in the Middle East, artificial intelligence is emerging as a potential "dark horse." The Bank of England has warned that the rapid expansion of AI computing power is driving up the cost of memory chips used in mobile phones, laptops, and game consoles. Data from the British Retail Consortium in July indicates that rising chip costs are being passed on to the prices of electronic products.

Prior to UK Employment, GBP/JPY Expects Gains Above 163.00

Alina Haynes

Mar 14, 2023 14:26

 GBP:JPY.png

 

In the early Asian session, the GBP/JPY pair is evaluating an intermediate cushion above 162.00 after detecting restrictions in the upside momentum above 163. As investors become concerned about the United Kingdom's labor cost index, which has occupied the Bank of England (BoE) with high inflation issues for the past year, the cross is expected to resume its upward trend.

 

The release of the UK's Employment data will be the primary catalyst for the British Pound in the near future. Claimant Count Change (Feb) is expected to decline by 12.4K compared to the previous release of 12.9K. The three-month Unemployment Rate is expected to increase to 3.8% from the previous release of 3.7%.

 

The primary catalyst will be the Average Earnings data, which is anticipated to decrease to 5.7% from the previous release of 5.9%. Investors should be aware that higher employment costs and persistent food price inflation in the British economy have fueled inflationary pressures. And now, a decline in the labor cost index will please Bank of England Governor Andrew Bailey, who is losing sleep over devising a strategy to slow the double-digit inflation rate.

 

It is essential to observe that the failure of Silicon Valley Bank (SVB) has repercussions outside of the United States. In a joint statement from the UK Treasury and the Bank of England (BOE) on Monday, Jeremy Hunt, the minister of finance, stated that "deposits will be protected without taxpayer support." The UK authorities have confirmed that HSBC has agreed to rescue Silicon Valley Bank's (SVB) UK subsidiary. UK Hunt added, "These actions have no direct material impact on any other British institutions."

 

Following the announcement of unchanged monetary policy by former Bank of Japan (BoJ) Governor Haruhiko Kuroda, investors are shifting their focus to BoJ Kazuo Ueda's commentary on the Yield Curve Control (YCC) and a transition to restrictive monetary policy.

 

Alvin Liew, senior economist at UOB Group, believes that Japan's exit from the YCC and negative interest rates are inevitable; the question is how Ueda will implement his plan. We anticipate a gradual, well-communicated change in Ueda's pace, as opposed to a sudden one. We see it as two primary steps: 1) Protracted adjustment to its forward guidance on YCC and interest rates (April to December 2023) and 2) Elimination of YCC and abolition of the negative policy rate in early 2024."


Suggestion