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January 11 - Recently, the Hainan Provincial Department of Natural Resources and Planning and the Hainan Provincial Forestry Bureau jointly issued the "Implementation Opinions (Trial, Revised) on Promoting the Joint Approval System for Land Use, Forestry Use and Sea Use in the Province". The reform will promote the joint approval system for land use, forestry use and sea use throughout the province, deepen the integration of the departments business, further improve the efficiency of land use, forestry use and sea use factor guarantee for major projects, and reduce the cost of doing business for enterprises.On January 11th, US President Trump claimed on the 9th that the US needs Greenland, and if a deal cannot be reached "easily" on Greenland, he will have to take "difficult measures." These remarks have sparked concern among some NATO member states and European countries. According to reports from British media outlets such as the Daily Telegraph, military leaders from several European countries are drafting a possible NATO mission plan to counter Trumps threats. However, the reports also mention that the EU is drafting sanctions against US companies in case Trump rejects NATO deployment proposals. Tech giants like Meta, Google, Microsoft, and X, as well as US banks and financial companies, could be restricted from operating in Europe. Furthermore, a more extreme option could be expelling US troops from their bases in Europe, depriving them of key transit points for operations in the Middle East and elsewhere.On January 11th, Zhao Wei, Chief Economist of Shenwan Hongyuan Securities, stated at the China Chief Economist Forum Annual Meeting that the RMB has entered an appreciation cycle by 2025. He boldly predicts that starting in 2026, the RMB may maintain an appreciation rate of at least two to three percentage points annually over the next few years, resulting in a total appreciation of over 30% within approximately ten years. The stock market will also benefit during this process.On January 11, the South Korean presidential office, Cheong Wa Dae, stated regarding North Koreas claim of a South Korean drone intrusion that the government will investigate the facts and promptly release the results. Cheong Wa Daes National Security Office emphasized that the South Korean government reiterates that it has "no intention of provoking or provokering North Korea" and will continue to take concrete measures to ease tensions and enhance mutual trust between the two Koreas.January 11 - According to multiple US media reports on the 10th, US Secretary of State Marco Rubio spoke with Israeli Prime Minister Benjamin Netanyahu that day. Several sources familiar with the matter told these media outlets that Rubio and Netanyahu discussed the situation in Iran, Syria, and the Gaza peace agreement during their call.

The EUR/USD Declines toward 1.0500, with US Inflation and ECB Lagarde in the Spotlight

Alina Haynes

May 09, 2022 10:10

The EUR/USD fell below 1.0530 and is likely to test the psychological support level of 1.0500. After Monday's opening bid, the value of the asset is continuing to decline. As of now, a bearish open trend has been noticed, and the index is attempting to challenge its bottom from the previous week at 1.0483.

 

Euro bulls are anticipated to stay volatile this week ahead of Wednesday's speech by Christine Lagarde of the European Central Bank (ECB). Lagarde's statement will shed light on the expected monetary policy action taken by the ECB in June. Notable is the fact that the ECB left its interest rates constant in its most recent announcement regarding interest rates. Until the end of its bond-buying program, which is anticipated for the third quarter, the European Central Bank (ECB) has mandated that policy rates would remain constant. Consequently, investors should not anticipate a rate increase from the ECB before the end of the year. In addition, fears of stagflation in the eurozone following the Ukraine crisis have diminished the likelihood of the ECB adopting a hawkish tone.

 

In the meantime, the US dollar index (DXY) transforms any corrective downturn into an ideal purchasing opportunity for market participants. The DXY is robust as the probability of a June rate hike by the Federal Reserve (Fed) rises. At the time of publication, the DXY has risen above 130.90 and is inching closer to recapturing last week's peak of 104.06.

 

Aside from ECB Lagarde's speech, investors are focusing on Wednesday's release of US inflation data. A preliminary estimate for annual US inflation is 8.1 percent, down from the previous estimate of 8.5 percent. 

EUR/USD

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