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SPACEX shares continued their decline, falling 2% in pre-market trading.Wedbush: Raises target price for Micron Technology (MU.O) from $550 to $1,300.June 18th - Analyst Divyang Shah stated that, as widely expected, the Bank of England kept interest rates unchanged at 3.75% at its June meeting. The statements guidance remained unchanged, with the Bank of England reiterating its "standby to act if necessary" to curb inflationary pressures. The voting results also introduced a degree of surprise. At the April meeting, only Chief Economist Peale supported a rate hike; at this meeting, Monetary Policy Committee member Green also joined the pro-rate-hike camp, with both voting in favor of a rate increase.Text of the US-Iran Memorandum of Understanding: Following the signing of the memorandum of understanding, the United States will soon grant waivers for Iranian oil exports.On June 18th, the Bank of England held its fourth consecutive meeting, keeping interest rates unchanged at 3.75%, believing that a rate hike was premature given the unclear strength of rising inflationary pressures. The Monetary Policy Committee voted 7-2 to maintain the rate, in line with market expectations. Monetary Policy Committee member Green and Chief Economist Peale advocated a 25 basis point hike. Most other members largely maintained Governor Baileys stance of "actively maintaining the status quo." Bailey argued that this stance itself constituted an effective tightening compared to market expectations of a rate cut before the conflict. Both Peale and Green stated that a rate hike now would help curb household expectations of future inflation. According to the banks quarterly survey, household inflation expectations have risen to their highest level since at least 2009. The preliminary ceasefire agreement reached between the US and Iran is expected to reopen the Strait of Hormuz and lower oil prices. Given the UKs heavy reliance on imported natural gas, maintaining the agreement would be beneficial to the UK. However, Governor Bailey stated, "Regardless of what the future holds, the higher energy prices of the past four months already indicate that some inflationary pressures are building." The Bank of England expects inflation to rise above 3.25% in the fourth quarter, up from 2.8% in May, but down from the 3.6% to 3.7% forecast in April under two of the three main scenarios. The outlook for economic growth is also slightly more optimistic, with potential growth projected at 0.2% per quarter, up from 0.1% in the previous forecast.

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

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Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers. 

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.


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