EUR/USD 1.17773
0.466%
Gold 4746.96
1.278%
Oil 91.396
-3.468%
USD/JPY 156.525
-0.257%
GBP/USD 1.36235
0.539%
GBP/JPY 213.247
0.293%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
According to Hong Kong Stock Exchange documents, Benfu Nature Outdoor Sports Group Co., Ltd. (formerly known as Pelliot Outdoor Sports Group Co., Ltd.) has submitted a listing application to the Hong Kong Stock Exchange.Apple shares rose 2% to $293.20 a share, a new record high, bringing its total market capitalization to $4.31 trillion.Porsche will close three non-vehicle manufacturing divisions on May 8th, with CEO Michael Leiters pushing for layoffs for the first time in response to declining sales and cost pressures from adjusting its electric vehicle strategy. Porsche announced on Friday that it plans to close its Cellforce battery business, electric bicycle business, and Ceitec software subsidiary, a decision that will affect more than 500 employees in Germany and Croatia. In April, Porsche agreed to sell its stake in its joint venture with the Bugatti supercar brand, and management has hinted at further asset divestitures in the future. Leiters acknowledged in March that in addition to the approximately 3,900 jobs planned for reduction by the end of the decade, the company intends to further reduce its workforce. Porsche currently employs approximately 40,000 people. The company expects its capital expenditures to peak this year, subsequently declining gradually as R&D spending decreases.On May 8th, Sam Stovall, Chief Investment Strategist at CFRA Research, stated, "I think this jobs report is positive because it confirms the labor market remains solid, which gives consumers some confidence and allows them to maintain resilient spending patterns. At the same time, the 4.3% unemployment rate will not force the Federal Reserve to reconsider its statement that it is not ready to tighten interest rates. Therefore, this is good data confirming that the overall economy and consumers remain healthy. The longer high oil prices persist, the greater the risk of damaging consumer confidence and spending. Currently, it doesnt seem to have a negative impact on economic growth or consumer confidence, but the longer this situation continues, the greater the risk."Ukrainian President Zelensky: Tomorrows actions depend on further developments today.

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