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UBTECH Robotics (09880.HK) rose 10% in late trading, with a turnover exceeding HK$3 billion.Gold prices dipped slightly in early trading on Wednesday, impacted by profit-taking and a stronger dollar, but remained near record highs ahead of the Federal Reserves interest rate decision. Investors widely expect the Fed to cut interest rates by 25 basis points, but attention will be focused on Chairman Powells speech for clues on the pace of future monetary easing. "The market has priced in a deep easing path, and a failure of the Fed to meet expectations could spark disappointment," said Pepperstone analyst Ahmad Assiri. Meanwhile, retail sales grew for the third consecutive month in August, suggesting that consumer spending remains healthy despite concerns about persistent inflation and a weak job market.Governor of Bank Indonesia: Interest rate decision takes into account the possibility of a Fed rate cut.On September 17th, Deutsche Bank analyst Sanjay Raja noted that the UK inflation rate, which remained at 3.8% in August, was a positive sign for the market. Core inflation was in line with expectations at 3.6%, while services inflation fell to 4.7% from 5.0% in July. Raja stated, "The good news is that the August data corrected some of the unexpected upward movement in July." However, the bad news is that inflation will still edge up before peaking—food inflation reached 5.1% in August and continues to rise. He added that the Bank of England may need to wait for more evidence before easing its restrictive policy again.The Indonesian rupiah fell slightly against the US dollar and is now trading at 16,440.

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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