EUR/USD 1.14583
-0.148%
Gold 4187.10
0.760%
Oil 77.374
1.242%
USD/JPY 161.543
0.159%
GBP/USD 1.32126
-0.153%
GBP/JPY 213.445
0.008%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Chinas one-year loan prime rate (LPR) until June 22 will be announced in ten minutes.Goldman Sachs lowered its gold price target, predicting the Federal Reserve will not cut interest rates this year. Guinea officially announced a ban on the export of raw gold ore to promote localized processing. A chart provides a quick overview of the pre-market gold and silver prices converted between domestic and international markets.June 22 – A single dissenting vote in the Bank of Japans latest interest rate decision indicates that the window of opportunity for "hawks" to push interest rates back to normal levels is closing. Toshiro Asada, a new member who only participated in his second policy meeting, voted against raising the benchmark interest rate to its highest level since 1995, contrary to the majority of his colleagues. He is also the first policy board member appointed by Prime Minister Sanae Takaichi, and made almost no attempt to hide his support for loose monetary policy in the vote. This new members actions provide a microcosm of the future direction of the policy board under Kazuo Uedas leadership. Takaichi plans to appoint another member this month who favors a "rebound" policy to replace Junko Nakagawa, whose term is expiring. Meanwhile, two other staunch "hawks" will also have their terms expire in about a year, giving Takaichi the opportunity to nominate more new members, significantly altering the overall inclination of the nine-member policy board.On June 22nd, Galaxy Securities research report stated that the East Asian conflict in the first half of 2026 led to rising oil prices and intensified inflation expectations, causing the market to shift its expectation of a Federal Reserve rate cut to a rate hike within the year. Coupled with the realization of liquidity, this put downward pressure on gold prices after their initial surge. The market has already fully priced in a single Fed rate hike in the second half of the year. If the Middle East conflict and the Strait of Hormuz blockade ease in the second half of the year, oil prices and inflation decline, and market expectations for marginal easing of the Feds monetary policy rise, gold prices are expected to resume their upward trend. Furthermore, the escalating global order and US debt and credit issues, along with the substantial progress of "de-dollarization" in the global credit currency system, will continue the long-term logic of gold price increases, driving central banks, investment institutions, and individuals to increase their gold purchases and gold asset allocation. This will support the medium- to long-term upward trend of gold prices and the valuation of A-share gold stocks.Japanese Prime Minister Sanae Takaichi: The Bank of Japan is expected to work closely with the government to implement appropriate monetary policy in order to achieve the 2% inflation target.

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

 EUR:GBP.png

 

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.


Suggestion