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On September 6th, Greek Prime Minister Kyriakos Mitsotakis announced a €2.2 billion (approximately US$2.56 billion) economic package aimed at alleviating the cost of living crisis in Greece. The measures focus on supporting self-employed individuals, pensioners, farmers, and families with many children, including raising the minimum wage from the current €920 to €1,000 by January 2028. Greek authorities expect to exceed budget targets again in 2026, thus allowing the government to provide subsidies and tax cuts to various groups. The Prime Minister assured that these new measures will not jeopardize Greeces fiscal situation and will comply with EU regulations on budget spending.On September 6th, local time, Russian President Vladimir Putin met with US President Donald Trumps special envoy, Sergei Witkov, and his son-in-law, Jared Kushner, at the Kremlin on the evening of the 5th. He briefed them on the details of the three-day ceasefire agreement reached between Russia and Ukraine, and stated that Russia would strive to ensure the progress of US-Ukraine negotiations and the safety of mediators. Witkov thanked Russia for agreeing to the three-day ceasefire. Putin stated that Russia had received a request through its intelligence and diplomatic departments to cease airstrikes on the Ukrainian capital, Kyiv. "I have issued the corresponding order, and from midnight tonight, (Russian) airstrikes on Kyiv have ceased," Putin said. Putin also noted that Ukraine had significantly reduced its attacks on Russian territory (including Moscow), "by an order of magnitude." Putin also mentioned that Ukraine had proposed a broader three-day ceasefire, which Russia had not agreed to. However, Russia will make every effort to ensure the progress of US-Ukraine negotiations and the safety of mediators.Belgorod Oblast authorities: A Ukrainian drone strike in Russias Belgorod Oblast has killed one person.On September 6, the Iranian Foreign Ministry issued a statement condemning the United States for its attacks on Iranian oil tankers in the Persian Gulf and the Gulf of Oman. The Iranian Foreign Ministry stated that such attacks are part of the ongoing US military action against Iran, including a maritime blockade and economic warfare, which clearly violate Article 2, Paragraph 4 of the UN Charter and pose a clear threat to international peace and the security of commercial shipping. The statement declared Irans determination to defend its sovereignty and national interests and resist US "state terrorism" and acts of aggression, including attacks on commercial shipping. The Iranian Foreign Ministry warned that the consequences of the USs continued aggressive and interventionist actions in the region should be borne by the US and its allies.September 6 (Xinhua) -- Russian President Vladimir Putin said that Kyiv has called for an expanded ceasefire, but Russia has not yet consulted with Ukraine on the matter. "The Ukrainian authorities have called for a broader three-day ceasefire, but we have never reached an agreement with them on this," Putin said during a meeting with U.S. special envoy Witkov and Trumps son-in-law Jared Kushner.

GBP/USD to Test 1.2260; Downside Remains Favored Due to Rising US CPI; UK GDP Watched

Daniel Rogers

May 12, 2022 10:13

The GBP/USD pair has broken to the negative from its week-long consolidation between 1.2260 and 1.2400. The asset may test the lower range of consolidation to confirm the bears' strength, but the downside remains intact as rising US inflation data has increased the likelihood of a massive rate hike by the Federal Reserve (Fed) in June.

 

Wednesday's 8.3 percent reading for the US Consumer Price Index (CPI) surpassed the 8.1 percent forecast by theștiindștiind. Market analysts anticipated that the Fed's June monetary policy would include a 50 basis point (bps) interest rate hike in response to the US CPI reading of 8.1%. Now, a higher-than-anticipated US inflation rate has increased the likelihood of a 75 basis point rate hike. This has shook the foreign exchange market, and investors are selling risky assets like there is no tomorrow.

 

In the meantime, the US dollar index (DXY) is trying to maintain its position above 104.00, although the upside remains intact. Regarding the British pound, investors anticipate the announcement of Gross Domestic Product (GDP) figures. The quarterly GDP estimate for the United Kingdom is predicted to be 1 percent, compared to the previous estimate of 1.3%, while the annual estimate is projected to be 9 percent, compared to the previous estimate of 6.6%. A higher-than-anticipated UK GDP may protect the pound from additional losses, whilst a weaker-than-anticipated figure would accelerate the asset's decline.

GBP/USD

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