EUR/USD 1.13865
0.150%
Gold 4071.52
1.116%
Oil 69.386
-2.717%
USD/JPY 161.751
-0.028%
GBP/USD 1.31980
0.059%
GBP/JPY 213.482
0.043%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Domestic News: 1. my country achieves significant breakthrough in the research and development of superconducting magnets for nuclear fusion reactors. 2. Wuhan Optics Valley introduces a package of new policies for science and technology finance, aiming to have over 100 listed companies. 3. National Bureau of Statistics: Industrial enterprise profits increased by 18.8% year-on-year in the first five months, with the electronics industry contributing over 40%. 4. Vice Premier Zhang Guoqing emphasized during his research visit to Zhejiang the need to strengthen the deep integration of scientific and technological innovation and industrial innovation. International News: 1. US Secretary of State Rubio: Pushing for Trumps visit to India early next year. 2. The US government may lift restrictions on the Anthropic Fable 5 model as early as next week. 3. ECB Executive Board member Schnabel: Price pressures may remain stronger than expected, and further interest rate hikes are anticipated. 4. A magnitude 6 earthquake struck the Hindu Kush region of Afghanistan, with tremors felt in the capital, Kabul. 5. Middle East Situation—① Israeli Army Radio: The Israeli army will reduce its forces in southern Lebanon and withdraw several combat brigades. ② Joint Maritime Information Center: The maritime security threat level in the Taiwan Strait has been raised from "moderate" to "high". ③ Following the Iranian Revolutionary Guards strikes on vessels violating regulations, more ships are seeking permission from Iran. ④ After the framework agreement between Lebanon, Israel, and the US, the Israeli military launched another attack on southern Lebanon. ⑤ Hezbollah: The Israel-Lebanon framework agreement is invalid, and it refuses to link Israeli troop withdrawal with Hezbollahs disarmament. On June 27th, European Central Bank (ECB) Executive Board member Schnabel warned that even if a US-Iran peace agreement reopens the Strait of Hormuz, price pressures could still be stronger than expected. Schnabel stated on Saturday that "food, goods, and services inflation face upside risks," and that energy price shocks could spread to a wider range of sectors. While welcoming the recent drop in energy prices due to the prospect of a US-Iran peace agreement, she warned that a ceasefire should not be a reason for complacency. She stated, "Uncertainty remains high, but the announced peace agreement reduces the likelihood of a negative scenario." Nevertheless, oil prices are expected to remain high because the Strait of Hormuz is only gradually reopening. Schnabel, considered the most hawkish member of the Governing Council, reiterated that "the ECB expects further interest rate hikes to bring inflation back to 2% in the medium term." She noted that consumer inflation expectations have risen. However, there are no signs of wage pressures yet.The United Nations estimates that the Venezuelan earthquake could affect approximately 6.8 million people.ECB Executive Board member Schnabel: The ECB is expected to raise interest rates further.ECB Executive Board member Schnabel: There are currently no signs of wage pressure.

GBP/USD seeks to regain 1.2300 as higher UK CPI strengthens the case for a rate hike by the Bank of England and the USD retreats

Alina Haynes

Mar 23, 2023 15:00

 GBP:USD.png

 

During the Asian session, the GBP/USD pair attempts to reclaim the resistance level at 1.2300. Following a vertical correction, the Cable has recovered to near 1.2260 as the market anticipates that the absence of hawkish interest rate guidance from Federal Reserve (Fed) chair Jerome Powell while addressing the economy at the monetary policy meeting indicates that the Fed is close to ending its policy-tightening spell.

 

S&P500 futures have generated some gains in the Asian session following a decline on Wednesday as a result of Fed Powell's confirmation that the fight against intractable U.S. inflation will continue. Chairman of the Federal Reserve Jerome Powell has ruled out rate cuts in 2023, citing the difficulty of controlling inflation. In addition, US Treasury Secretary Janet Yellen's statement that the government "does not plan to insure all uninsured bank deposits" heightened fears of a banking sector collapse.

 

Following a recovery move, the US Dollar Index (DXY) has retreated on expectations that additional credit tightening to protect banking institutions will reduce overall demand, economic activity, and inflation. In the interim, the demand for US government bonds has increased as a result of expectations that US Janet Yellen will end further policy restrictions and reduce support for all bank deposits.

 

On the front of the United Kingdom, the Pound Sterling is likely to maintain its strength as the Bank of England (BoE) is scheduled to raise rates for the eleventh consecutive time. Governor Andrew Bailey of the Bank of England is expected to raise interest rates by 25 basis points (bp) in response to rising food and non-alcoholic beverage prices, as well as rising energy costs, which have contributed to inflation in the United Kingdom.

 

In the midst of global banking turmoil, the Bank of England's (BoE) interest rate decision will be difficult, as policymakers were divided over whether to raise rates further or maintain them at their present level.


Suggestion