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March 21 - As of 2:30 PM closing, the Shanghai Gold futures contract fell 1.22% to 1016 yuan/gram, the Shanghai Silver futures contract fell 1.77% to 17139 yuan/kilogram, and the SC Crude Oil futures contract rose 3.40% to 803 yuan/barrel.U.S. stocks continued their decline, with the benchmark index falling to an intraday low. The S&P 500 was last down 1.39%. On the news front, the U.S. is preparing for a possible deployment of ground troops to Iran.ECB Governing Council member Nagel: The ECB must take action when the second round of inflationary effects emerge.ECB Governing Council member Nagel: The higher the inflation and the longer the expectation remains above the target level, the greater the risk of a second round of effects.March 21 – According to CBS News, multiple sources briefed on the matter revealed that U.S. Department of Defense officials have made detailed preparations for the deployment of U.S. ground troops to Iran. Sources said that as Trump weighs options in a U.S.-Israeli-led conflict with Iran, senior military commanders have submitted specific requests to prepare for such options. Sources indicated that Trump has been considering deploying ground troops in the region. It remains unclear under what circumstances he would authorize the use of ground troops. When asked about ground troops in the Oval Office on Thursday, he told reporters, “No, I’m not going to deploy troops anywhere,” but added, “If I were to deploy them, I certainly wouldn’t tell you.” Two sources said the military has also held meetings to prepare for how to handle any Iranian soldiers and paramilitary personnel potentially detained during the operation should Trump decide to send U.S. ground troops, including where these Iranians would be sent.

EUR/GBP is anticipated to decline below 0.8730 as BoE-ECB policy divergence widens

Daniel Rogers

Mar 21, 2023 14:09

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The EUR/GBP pair fluctuates erratically within a 0.8730-point range during the Asian session. The cross aims to fall below the aforementioned support as the market anticipates higher rates from the Bank of England (BoE) despite credible indicators of banking turmoil.

 

The failure of three midsize United States commercial banks and the 164-year-old Credit Suisse has jolted the confidence of market participants. Two schools of thought have perplexed investors, with one believing that central banks could maintain a constant approach to interest rates despite the possibility of significant repercussions from the banking shakeup. Others believe that inflation is extremely persistent, especially in the United Kingdom region, and must be brought under control as soon as possible.

 

In order to maintain pressure on UK inflation, the market expects BoE Governor Andrew Bailey to announce a 25 basis point (bps) reduction in interest rates. This would result in 4.25 percent interest rates.

 

Prior to the Bank of England's interest rate decision, inflation data for the United Kingdom will be diligently monitored. The annual headline CPI is expected to decline from 10.1% to 9.8%, according to projections. At 5.8%, the core CPI, which excludes the cost of fuels and food, would not change.

 

Christine Lagarde's remarks on inflation projections and earnings bolstered expectations for the European Central Bank's (ECB) sustained rate hikes in the Eurozone. ECB According to Reuters, Lagarde stated that it is anticipated that inflation will remain excessively elevated for too long. She added that as a consequence of robust labor markets, wage pressures have increased and workers are endeavoring to regain some of their purchasing power.

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