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The Ukrainian military has attacked Russias Ilsky oil refinery.The UKs energy regulator, OFGEM, is seeking comments on draft guidance aimed at supporting appropriate supply chain security risk management for the downstream gas and electricity sectors.June 2 – Hong Kong Chief Executive John Lee met with the media in Kazakhstan today (June 2). Lee stated that this was his first time leading a delegation to Central Asia, and the visit had three objectives: first, to further explore emerging markets and lay the foundation for long-term economic and trade development; second, to strengthen relations and exchanges between governments and promote closer cooperation; and third, to build a hub-to-hub cooperation model. Lee noted that the visit to Kazakhstan yielded several results, with the trade delegation reaching 43 memorandums of understanding and cooperation agreements covering various fields including trade, investment, financial services, technology, aviation, and green finance.On June 2nd, Beijing auctioned off a residential land parcel in Sanhezhuang, Daxing District. The land area is 21,416.03 square meters, with a planned building area of 38,548.85 square meters and a plot ratio of 1.8. The starting price was 887 million yuan, with a starting floor price of 23,010 yuan per square meter. Greentown ultimately won the bid at the reserve price of 887 million yuan, resulting in a transaction floor price of 23,010 yuan per square meter.June 2 - Statistics from the Hong Kong Land Registry show that a total of 8,537 property sales and purchase agreements of all types were submitted for registration in May, a decrease of 1.8% month-on-month but an increase of 32.5% year-on-year. Calculated on a 12-month moving average, the number of property sales and purchase agreements in May was 7,637, an increase of 2.3% month-on-month and 35.3% year-on-year.

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.


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