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According to the Wall Street Journal, Accenture also participated in AlphaSenses funding round.According to the Wall Street Journal, JPMorgan Asset Management participated in a funding round for Alphasense, a U.S. financial information and market intelligence platform.June 3 – According to a Reuters poll of economists, the European Central Bank (ECB) will raise its deposit rate to 2.25% on June 11, with a possible further increase in September, as the central bank weighs energy-driven inflation against a weak economy. Inflation in May was 3.2%, well above the ECBs target of 3.0%. More worryingly, core inflation rose faster than expected, reaching 2.5%, indicating the impact of the war in Iran is pushing up prices. Recent indicators, including PMI surveys and official data, suggest an economic slowdown. With the war lasting over three months and no clear solution in sight, the situation could worsen further, and the Strait of Hormuz remains severely congested. Most policymakers have made it clear that a June rate hike is inevitable, and even a peace agreement is unlikely to prevent it. However, economists believe that factors such as a weak economy, a softening labor market, and already high interest rates compared to the surge in inflation expected in 2022 suggest that aggressive tightening is not advisable.June 3 - The European Central Bank (ECB) is expected to raise its key interest rate next week, the first time since 2011. This move aims to send a clear signal about inflation to the market as the eurozone economy faces the risk of recession. However, the situation in 2011 differed significantly from policymakers expectations, leading economists to worry that a repeat could occur. In 2011, the ECB raised its key interest rate twice in response to rising oil prices. However, policymakers misjudged the state of the eurozone economy, which was mired in a debt crisis. The rate hikes were quickly reversed, and the ECB lost credibility for failing to properly understand the severity of the economic challenges facing the eurozone. "It took them 10 years to regain their credibility, and now theyre going to repeat the same mistakes," said Sami Char, chief economist at Lomar de Odier. Holger Schmidlin, chief economist at Berenberg Bank, stated, "The ECBs planned rate hike in June might mitigate the impact to some extent, causing less damage, but further rate hikes could delay the economic recovery following the Iran crisis and could even plunge the Eurozone into an unnecessary short-term recession."Intel (INTC.O) shares extended gains to 7.8% in pre-market trading after five consecutive days of declines.

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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