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Baofeng Energy: It is expected that the net profit attributable to shareholders of the listed company will be RMB 11 billion to RMB 12 billion in 2025, representing a year-on-year increase of 73.57% to 89.34%. During the reporting period, the companys Inner Mongolia olefin project was put into production, and the production and sales volume of olefin products increased significantly year-on-year.The Peoples Bank of China has increased the re-lending quota for technological innovation and technological upgrading by 400 billion yuan to support the optimized implementation of policies for new economic and social development.The final reading of Frances December CPI will be released in ten minutes.On January 15, Zou Lan, Vice Governor of the Peoples Bank of China, stated at a press conference held by the State Council Information Office that the relending and rediscount quotas for supporting agriculture and small businesses will be combined, increasing the relending quota for supporting agriculture and small businesses by 500 billion yuan. A separate relending quota of 1 trillion yuan will be set aside for private enterprises within the total quota, focusing on supporting small and medium-sized private enterprises.On January 15, Zou Lan, spokesperson and vice governor of the Peoples Bank of China (PBOC), stated at a press conference held by the State Council Information Office that, based on the domestic and international economic and financial situation and the operation of financial markets, promoting stable economic growth and a reasonable recovery in prices are key considerations for monetary policy. The PBOC will flexibly and efficiently utilize various monetary policy tools, including reserve requirement ratio (RRR) cuts and interest rate cuts, to maintain ample liquidity, relatively loose social financing conditions, guide reasonable growth in the overall financial volume, and ensure balanced credit allocation. The PBOC will leverage the dual functions of monetary policy in terms of both aggregate and structural aspects, accelerate the implementation of a series of recently introduced structural monetary policy tools, and guide financial institutions to increase support for key areas such as expanding domestic demand, technological innovation, and small and medium-sized enterprises (SMEs).

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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