EUR/USD 1.14295
-0.099%
Gold 4123.91
-0.984%
Oil 69.257
0.997%
USD/JPY 161.847
-0.144%
GBP/USD 1.33825
-0.053%
GBP/JPY 216.597
-0.194%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On July 7th, Daiwa Securities released a research report stating that the latest channel inspections show that the retail sales value (RSV) of the sporting goods industry slowed quarter-on-quarter in the second quarter of this year, and the monthly volatility of RSV increased, further reducing the short-term predictability of Xtep (01368.HK). Meanwhile, the transformation of Xteps core brand will disrupt its wholesale business and require upfront investment, potentially diluting Xteps short-term revenue and profit margins. Although the Saucony brand can continue to maintain high growth, the core Xtep brand may face challenges from slower growth and increased competition. The bank lowered its earnings per share forecast for Xtep this year by approximately 12%, and reduced its target price from HK$5.2 to HK$3.9, downgrading its rating from "Outperform" to "Hold".Indian government officials said India will supply Indonesia with BrahMos cruise missile systems and Astra air-to-air missiles.Japans May coincident economic index rose 0.4% month-on-month, down from 1.3% in the previous month.Bernstein: Launches coverage research on SpaceX (SPCX.O) with an "Outperform" rating and a target price of $239.On July 7th, Citigroup issued a report stating that Kingboard Laminates (01888.HK) announced a price increase. Given the larger-than-expected increase, Citigroup raised its earnings forecast and target price from HK$120 to HK$130, maintaining a "Buy" rating. Citigroup believes the recent share price pullback was mainly due to fund rotation from higher-valuation AI hardware stocks to non-technology sectors, Metas sale of excess computing power, and the reduction of shares by its largest shareholder, Hallgain. However, Citigroup views this pullback as a buying opportunity. The bank indicated that subsequent catalysts include a higher-than-expected average selling price of electronic fiberglass cloth, a potential for a better-than-expected first-half profit warning, and the markets expectation of upward revisions to financial forecasts after the first-half results are released. Citigroup raised its 2026-2028 earnings forecasts by 11-12%, to RMB 9.607 billion, RMB 14.275 billion, and RMB 19.523 billion, respectively. Furthermore, the stock had previously been added to Citigroups upside catalyst watch list, expiring on August 2nd.

GBP/USD falls to around 1.2370 as the BoE considers taking swift action ahead of UK inflation and US purchasing managers' indices

Alina Haynes

Apr 17, 2023 13:53

 GBP:USD.png

 

On Monday morning, the GBP/USD currency pair retested an intraday low of 1.2390 after extending Sunday's decline from a 10-month high. To provoke adverse after breaking a four-week uptrend, the Cable pair explains the most recent concerns emanating from the United Kingdom (UK) and the optimism surrounding the Federal Reserve (Fed).

 

According to the Financial Times (FT), "The Bank of England is considering a major overhaul of its deposit guarantee scheme, including increasing the amount covered for businesses and compelling banks to pre-fund the system to a greater extent to ensure faster access to cash when a lender collapses."  The revelation fuels banking concerns in the United Kingdom and places pressure on the Cable duo.

 

UK Chancellor Jeremy Hunt's concerns about US subsidies may also be exerting downward pressure on the GBP/USD exchange rate as British firms rush to claim benefits before leaving the country. According to the news, "Chancellor Jeremy Hunt warned Sky News that Britain should be wary of any new subsidies, warning that they could undermine the economy and possibly even spark a protectionist trade war."

 

A larger-than-expected decline in US retail sales was unable to offset positive data from US industrial production and the University of Michigan's (UoM) consumer confidence index from the previous day. Despite this, US retail sales decreased by 1.0% in March compared to the predicted -0.4% decline and February's -0.2% decline. As opposed to the 0.2% market consensus and previous reading, Industrial Production increased by 0.4% in the month in question. The preliminary result of the University of Michigan's (UoM) Consumer Confidence Index for April, which increased to 63.5 from 62.0 analysts' expectations and previous readings, was also encouraging. In addition, inflation forecasts for the next year increased from 3.6% in March to 4.6% in April, while inflation forecasts for the next five years decreased by 2.9% during the same month.

 

Notably, Fed officials have recently appeared more hawkish than their BoE counterparts, which has exerted additional pressure on the GBP/USD exchange rate.

 

In this environment, the S&P 500 Futures exhibit modest gains following Wall Street's pessimistic close, while bond yields remain unchanged following weekly increases.

 

Moving forward, the current week is crucial for GBP/USD speculators as it contains a variety of high-quality inflation, employment, and UK PMI data. These data may be used to support the Bank of England's (BoE) officials' waning hawkish inclination and may keep bears in play. However, the US PMIs and Fed discussions should not be disregarded when looking for clear guidelines.

Suggestion