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June 18 – Hong Kong Exchanges and Clearing Limited (HKEX) announced today the renewal of its Memorandum of Understanding (MOU) with the China Financial Futures Exchange (CFFEX) to deepen exchanges and cooperation between the two exchanges and jointly promote the healthy development of the financial markets in Hong Kong and Shanghai. According to the MOU, the two sides will deepen cooperation in areas such as exploring the possibility of product and business collaboration, strengthening the sharing of research findings and experience, and exchanging personnel and training programs.Eurozone construction output rose 0.6% month-on-month in April, down from 0.80% in the previous month.On June 18, the Cyberspace Administration of China, the Ministry of Industry and Information Technology, and the Ministry of Public Security jointly released the "Measures for Network Data Security Risk Assessment," which will take effect on August 20, 2026. The Measures clarify the relevant requirements, basis, and forms of risk assessment. They stipulate that important data processors should conduct risk assessments annually. If a significant change in the security status of important data may adversely affect data security, a risk assessment should be conducted promptly on the changed parts and their impact. Network data processors handling general data are encouraged to conduct risk assessments at least every three years. The Measures clarify that risk assessments should be conducted in accordance with legal and regulatory requirements and with reference to relevant national standards. The Measures also stipulate that network data processors may conduct risk assessments themselves or entrust third-party assessment agencies to do so.The pound fell to a 10-week low against the dollar, trading at 1.3252.The UK FTSE 100 index fell by 1.00% on the day.

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

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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.


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