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Japans BSI large-scale manufacturing confidence index was 7.6 in the third quarter, compared with a previous reading of -1.8.Japans corporate goods price index rose 7.6% year-on-year in August, below the expected 7.40% and the previous reading of 7.20%.Japans corporate goods price index fell 0.2% month-on-month in August, compared to a forecast of 0.00% and a previous reading of 0.10%.On September 11th, according to foreign media reports, copper futures on the London Metal Exchange (LME) fell sharply on Thursday, retreating from an intraday record high, as reports indicated that the White House has yet to make a decision on refined copper tariffs due to concerns that rising prices could push up manufacturing costs. LME three-month copper fell 3.74% to $14,222 per tonne, after hitting an intraday record high of $14,875 per tonne. On Thursday, COMEX October copper futures fell 5% to $6.481 per pound (approximately $14,288 per tonne), narrowing the premium relative to LME prices. Ole Hansen, head of strategy at Saxo Bank, commented on the Reuters tariff report, saying that this latest news undoubtedly triggered significant market volatility. Previously, large quantities of metal had flowed into US warehouses due to market expectations that the US might impose tariffs on refined copper imports, raising concerns about supply shortages in traditional consumption regions.On September 11, US President Donald Trump stated on Fox News Thursday night that he plans to block Democratic-backed legislation if Democrats regain control of the House and Senate after the midterm elections. This indicates that as Republicans struggle to retain their majority in Congress, Trump has begun to envision a governing strategy in a "divided government" scenario. Trump said, "Things will be different. Ill be a blocker, what else can I say? However, I might be able to make a deal with them (the Democrats). Theyll have demands, and you can make a deal with them. Thats often how it is." Trump also stated that this election is not as "difficult" as previous campaigns.

Despite the fact that Eurozone interest rates are anticipated to peak sooner, the EUR/GBP looks to have breached over 0.8630

Daniel Rogers

Dec 07, 2022 15:12

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The EUR/GBP pair has had a stronger recovery from 0.8580 during the Asian session, approaching the pivotal 0.8630 level. Despite the European Central Bank (ECB) being close to reaching an interest rate high, there has been strong demand for Euro bulls. Thus, the monetary policy meeting scheduled for next week will be of utmost significance.

 

The cross is attempting to break strongly above the significant barrier of 0.8630 for the fourth time this week. The hawkish remarks made by ECB policymakers are holding back the euro bulls.

 

"There will be another rate hike," said Constantinos Herodotou, governor of the Central Bank of Cyprus, "but we are very near to neutral." The European Central Bank's chief economist, Phillip Lane, is unsure as to whether the inflation peak has already occurred or will take place in 2019. He stated that although "much has already been done," he does not rule out more rate increases.

 

Investors are currently looking forward to Christine Lagarde's speech, which will be revealed on Thursday. The ECB President is likely to lower her inflation projection in her future statement in light of the poor retail sales numbers.

 

In contrast to expectations for a 1.7% loss, this week's Eurozone retail sales numbers showed a 1.8% decline. Aside from that, annual economic data contraction came in at 2.7% as opposed to the 2.6% consensus expectation. A decline in household demand demonstrates the effectiveness of the European Central Bank's (ECB) policy tightening initiatives. To reach their sales targets, firms could feel pressured to lower the prices of their products and services.

 

The United Kingdom's deteriorating food crisis, brought on by growing costs and a labor shortfall, has had an impact on the Pound Sterling. According to Minette Batters, president of the National Farmers Union, "the government and the entire supply chain must act swiftly." The Financial Times stated that "tomorrow might be too late." The economy already faces rising food inflation, and the issue with the supply of food will make matters worse.


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