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January 27th - Latest industry data shows that major UK retailers saw their fastest price increases this month since February 2024, driven by rising prices in food, furniture, health, and beauty products. The British Retail Consortium (BRC) Store Price Index shows that retail prices rose 1.5% year-on-year in January, up from 0.7% in December. Food prices rose 3.9% year-on-year, up from 3.3% in December, marking the largest increase since October last year. "Any claims that inflation has peaked are not supported by these figures," said BRC Chief Executive Dickinson. "Store price inflation surged this month as businesses faced persistently high energy costs and the continued pass-through of National Insurance (NPIC) increases. Meat, fish, and fruit were particularly affected."BHP Billiton has surpassed Commonwealth Bank of Australia to become Australias most valuable stock.Chart: Speculative Sentiment Index on Tuesday, January 27, 2026On January 27th, according to a research report from Chaos Tiancheng Futures, the main lithium carbonate contract fell 6.56% yesterday, closing at 165,680 yuan/ton. Following increased regulatory scrutiny from exchanges last week, the scope and intensity of window guidance have been further expanded this week, significantly suppressing market sentiment. If speculative funds withdraw before the holiday, the subsequent trend and pace may depend on the post-holiday verification of the actual supply and demand situation in the spot market. In the short term, due to excessive trading in previous lithium price expectations and a rapid price increase, there is a risk of correction following increased regulation. Given the compliance risks facing domestic supply and the continued risks of resource nationalism and geopolitics for overseas supply, we believe that the central price of lithium carbonate will maintain an upward trend until the narrative of a supply-demand reversal driven by high lithium battery demand is disproven.Hyundai Motors stock price narrowed its losses; it was last quoted at 479,500 won, down 2.6%.

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

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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.

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