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January 24th - According to The Hill, a new poll shows that a majority of respondents have a negative view of the performance of U.S. Immigration and Customs Enforcement (ICE). A poll released Friday by The New York Times and Siena College found that 63% of registered voters disapprove of ICEs handling of the situation, while only 36% approve. Of those, 55% expressed "strong disapproval," while only 24% expressed "strong approval." This poll was conducted after the shooting death of 37-year-old Renee Good by ICE officers in Minneapolis, an incident that sparked weeks of unrest in the city. As part of the Trump administrations aggressive crackdown on immigration, the Department of Homeland Security (DHS) deployed immigration officials to Minnesota. However, local officials say that citizens and other legal residents have also been treated unfairly in these operations, and tensions between protesters and federal officials remain high.Air raid sirens sounded in Kyiv, the capital of Ukraine, on January 24 local time.The Cyberspace Administration of China has issued a notice soliciting public comments on the "Guidelines for the Classification and Grading of Financial Information Service Data (Draft for Comment)".Ukrainian President Zelensky: Russia launched a large-scale attack on several regions of Ukraine early this morning, firing more than 370 drones and 21 missiles of different types, resulting in one death and dozens of injuries.January 24th - According to sources, Nvidia CEO Jensen Huang recently visited China, with his first stop being Nvidias new office in Shanghai. This afternoon, Huang was seen visiting a local farmers market in Shanghai. He will also attend the companys annual meeting and distribute red envelopes to employees. This is Huangs first visit to China in 2026.

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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