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On May 24, local time, Mohsen Rezaei, military advisor to Irans Supreme Leader, stated that Iran will respond "strongly and unprecedentedly" to any actions targeting the Strait of Hormuz or hostile forces entering the Persian Gulf, and will initiate countermeasures by breaking the maritime blockade. Rezaei also stated that if the current situation continues, one of Irans strategic options is to potentially withdraw from the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). He claimed that this move would have "serious consequences" for the other side.On May 24, it was learned from the National Data Administration that my country is accelerating the research and formulation of technical standards for a nationwide integrated computing power network. There are already 12 related guiding technical documents, covering multiple aspects such as computing power monitoring and scheduling, computing-power collaboration, and security protection, to promote the optimal allocation of computing power resources nationwide.On May 24th, European Central Bank (ECB) Governing Council member Kocher stated that the ECB will face an interest rate hike next month unless a sustainable peace agreement is reached between the US and Iran. Eurozone inflation this year may be higher than previously expected, while countries are still grappling with previous price shocks. Meanwhile, the economy has shown considerable resilience. "There are always some extremely low-probability scenarios that could lead to different assessments of the situation, but currently, all indications suggest we will have to decide between maintaining interest rates and raising them," Kocher said. "And it is clear to me that if the situation does not improve, we will have to focus our discussions on taking action." He also stated that it is not appropriate to make any commitments now, and doing so would be meaningless. Uncertainty is high, so too many options should not be ruled out prematurely. Of course, positive developments are hoped for.On May 24, the Russian Ministry of Defense stated that the Russian military used multiple types of missiles, including the Hazel, Iskander, Kinzhal, and Zircon, as well as attack drones, to hit targets including Ukrainian military-industrial complexes, military infrastructure, the headquarters of the Army General Staff, the headquarters of the Main Intelligence Directorate of the Ministry of Defense, and other Ukrainian military command posts. No civilian facilities were planned or targeted.German Chancellor Merz: Russia has once again used the Hazel missile system to attack Ukraine. The German government strongly condemns this reckless escalation.

Two Trades to Watch: DAX, GBP/USD

Jimmy Khan

May 07, 2022 10:43


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The DAX is falling as industrial output declines.


After a slaughter on Wall Street that saw the Nasdaq finsh 5% down, European equities have begun in the red, extending losses from the previous day.


Fears of inflation, stagflation, and recession are weighing on the market as we approach the weekend. The DAX is expected to shed 1.4 percent this week, marking the fifth consecutive week of losses.


In March, German industrial output decreased -3.9 percent on a month-over-month basis, down from 0.2 percent in February and considerably below the -1 percent drop forecast. The negative report comes on the heels of a sharp drop in German manufacturing orders in March. The data represents the economic effect of the Russian conflict on Germany and the Eurozone as a whole.


Germany does not have any additional statistics due today. Sentiment and the US NFP announcement will affect European indexes.