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EU Defence and Space Commissioner Coubilius: The US demands on European defense are "reasonable".The chart shows that at 23:00 Beijing time on February 13, there will be large foreign exchange options contracts for EUR/USD, USD/JPY, etc. 11 of these contracts have a strike price of over 1 billion. Please manage your risk.February 13 – The Ministry of Public Security announced on February 13 that the 11th China-US Drug Intelligence Exchange Meeting was held in the United States from February 10 to 12, local time. Inter-agency drug enforcement delegations from China and the US participated in the meeting. During the meeting, both sides conducted in-depth discussions on the drug situation, the cleanup of illegal online information, cooperative cases, chemical control, and anti-money laundering related to drug trafficking. They reported on the latest developments, exchanged opinions and suggestions, and clarified the direction of cooperation. Both sides agreed to jointly promote the healthy, in-depth, and pragmatic development of China-US drug enforcement cooperation on the basis of equality and mutual respect. The China-US Drug Intelligence Exchange Meeting, which began in 2002, is hosted alternately by the drug enforcement departments of the two countries and is an important institutional meeting in the field of drug enforcement between China and the US.February 13th - According to Politico, six European officials stated that they do not expect the Munich Security Conference to achieve much substantial progress in ending the Russia-Ukraine conflict. Two European officials and a senior US official revealed that the US has made it clear to Ukraine that it will not finalize a security guarantees agreement before a general agreement is reached. However, the peace process is stalled due to territorial disputes. A senior government official stated that President Trump is not attempting to use the agreement as leverage to pressure Zelensky. The official stated, "Trump wants to finalize and implement many things before actually signing, not just sign for the sake of signing, which would hinder subsequent peace negotiations." Another source familiar with the matter said that the US, Russia, and Ukraine plan to meet again next week, possibly in Miami or Abu Dhabi, where the US believes any substantial progress is more likely to occur.On February 13th, the State Administration for Market Regulation issued the "Guidelines on Anti-Monopoly Compliance of Internet Platforms." The guidelines require that platform operators with a dominant market position avoid abusing their market dominance by selling goods at unfairly high prices or purchasing goods at unfairly low prices in the following ways: (i) charging platform operators significantly higher fees than other similar business platform operators under the same or similar market conditions, such as commissions, registration fees, handling fees, membership fees, technical service fees, information service fees, and marketing promotion fees, or increasing these fees beyond the normal range when costs are basically stable; (ii) indirectly charging platform operators unfairly high fees by splitting service items or adding new charges; (iii) paying platform operators significantly lower prices for goods than other similar business platform operators under the same or similar market conditions.

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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