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Market news: AMD (AMD.O) and Indias TCS will bring the cutting-edge "Helios" rack-mounted AI architecture to India.Euro Stoxx 50 futures rose 0.13%, German DAX futures rose 0.24%, and UK FTSE 100 futures rose 0.18%.February 16th - According to the Ministry of Transport, data from the Comprehensive Transportation Spring Festival Travel Rush Task Force shows that on February 15th, 2026 (the 14th day of the Spring Festival travel rush, the 28th day of the twelfth lunar month, Sunday), the total cross-regional passenger flow in China reached 286.397 million person-times, a 0.3% increase compared to the previous day and a 10.7% increase compared to the same period in 2025 (Monday). Specifically, railway passenger volume was 13.798 million person-times, a 9.8% decrease compared to the previous day and a 3.2% increase compared to the same period in 2025. Road passenger flow (including non-commercial passenger car trips on expressways and ordinary national and provincial highways, and commercial road passenger traffic) reached 269.31 million person-times, a 0.9% increase compared to the previous day and an 11% increase compared to the same period in 2025. Among them, the volume of commercial passenger traffic by road was 38.45 million, a decrease of 4.2% month-on-month and an increase of 8.2% year-on-year; the volume of non-commercial passenger car trips on expressways and ordinary national and provincial highways was 230.86 million, an increase of 1.8% month-on-month and an increase of 11.5% year-on-year. The volume of passenger traffic by waterway was 919,000, a decrease of 4.8% month-on-month and an increase of 38.5% year-on-year. The volume of passenger traffic by civil aviation was 2.371 million, a decrease of 1.6% month-on-month and an increase of 6.4% year-on-year.February 16th - Iran and the United States are scheduled to hold their second round of indirect talks on February 17th in Geneva, Switzerland. Ahead of the talks, Iran stated that it seeks a nuclear agreement with the United States that would bring economic benefits to both sides. According to Irans Fars News Agency on February 15th, Hamid Gambari, Irans Deputy Foreign Minister in charge of economic affairs, said, "To ensure the sustainability of the agreement, it is crucial that the United States also benefits in areas where it can quickly obtain high economic returns." He indicated that the second round of indirect talks on the 17th will cover shared interests in areas such as oil and gas fields, joint mining operations, mining investment, and even aircraft procurement.The yield on Japans 40-year government bonds rose 7.0 basis points to 3.725%, while the yield on Japans 30-year government bonds rose 5.0 basis points to 3.485%.

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.

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