EUR/USD 1.16392
0.053%
Gold 4412.71
0.254%
Oil 93.634
-0.614%
USD/JPY 153.372
-0.115%
GBP/USD 1.35534
0.055%
GBP/JPY 207.876
-0.042%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Shares of U-Robot (03231.HK) in Hong Kong surged in late trading, rising more than 30% at one point, and are currently up 23%.JPMorgan Chase upgraded Meta Platforms (META.O) from Neutral to Overweight and raised its price target from $640 to $820.On September 10th, at a press conference held by the State Council Information Office, Li Chao, Vice Chairman of the China Securities Regulatory Commission (CSRC), stated that the CSRC will further expand high-level opening-up. The CSRC will adhere to promoting reform and development through opening-up, continuously improve the facilitation of cross-border investment and financing, optimize the systems and mechanisms for qualified foreign investors and interconnectivity, and support enterprises in making good use of both domestic and international markets and resources. The CSRC will actively participate in global financial governance and strengthen its regulatory capacity under open conditions.On September 10th, at a press conference held by the State Council Information Office, Li Bin, spokesperson and deputy director of the State Administration of Foreign Exchange (SAFE), stated that during the 15th Five-Year Plan period, SAFE will comprehensively and deeply promote foreign exchange management reform and continuously build a more convenient, open, secure, and intelligent foreign exchange management system. Among these, greater convenience primarily means enabling compliant and trustworthy business entities to conduct foreign exchange business more efficiently and conveniently. SAFE will vigorously promote reforms in banks foreign exchange business operations and continuously improve the foreign exchange facilitation policy system of "the more trustworthy, the more convenient" and "compliance first."September 10th - Despite pressures from rising fuel costs, global competition, and drought, the Eurozone economy performed better than expected. Accelerated bank lending in July also indicates that the European Central Banks previous interest rate hikes have not significantly weakened economic activity, leaving room for further policy tightening. Martin Wolburg, senior economist at Generali Investment, stated that Lagarde is expected to maintain a "hawkish wait-and-see" stance, leaving room for further rate hikes. Financial markets anticipate one more rate hike this year and one to two more next year; economists believe that the recent rate hikes may be the last for now, but the risk of further tightening is rising. Meanwhile, tightening financing conditions, with long-term bond yields rising to their highest levels since before the global financial crisis, coupled with inflation and government debt concerns, large technology company bond issuances, and political turmoil in Germany, have further pushed up yields, limiting the ECBs room for further rate hikes.

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