EUR/USD 1.15678
0.343%
Gold 4376.09
0.578%
Oil 81.485
1.319%
USD/JPY 159.356
-0.090%
GBP/USD 1.35343
0.362%
GBP/JPY 215.682
0.268%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Turkish President Recep Tayyip Erdoğan: Europe seems unwilling to accept Türkiye into the EU. Joining the EU is not our priority; Europe is the one thats losing out.August 15th - According to the Financial Times, Kyivs air defense forces were almost helpless in the face of a recent round of Russian ballistic missile attacks. The reason is simple: their Patriot missile defense systems ran out of interceptor missiles. This severe shortage of the only weapon capable of intercepting Russian ballistic missiles launched at Ukraine is exposing a critical vulnerability in Ukraines air defense system. As Moscow intensifies its offensive ahead of winter, the pressure on Ukraines air defense is further escalating. Ukrainian officials stated that the limited number of interceptor missiles supplied by the United States has been exhausted in recent weeks. Russia launched a missile attack on Kyiv on August 5th, followed by a second attack three days later. In both attacks, Ukraine failed to intercept any incoming ballistic missiles. Ukrainian officials revealed that due to the increasingly serious shortage of interceptor missiles, the Ukrainian Air Force has stopped routinely publishing the number of missiles launched by Russia to avoid revealing the number of missiles it failed to intercept.August 15th - According to the website of the China Maritime Safety Administration, the Jiangmen Maritime Safety Administration issued a navigation warning stating that military training will be conducted in parts of the South China Sea from 00:00 to 12:00 daily from August 16th to 17th, and entry is prohibited.Russian Foreign Ministry: The potential US and Turkish arms supply plans to Kyiv would weaken Moscow’s relations with Washington and Ankara.Russian Foreign Ministry: A spokesperson for the Russian Foreign Ministry stated that the US and Turkey have been asked to explain their reported plans to provide weapons to Kyiv.

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