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April 18 - According to the Wall Street Journal, US officials stated that the US military is preparing to board and seize Iranian-linked oil tankers and merchant ships in international waters in the coming days, expanding its naval operations beyond the Middle East. This plan comes as the Iranian military continues to tighten its control over the Strait of Hormuz, attacking several merchant ships on Saturday and declaring the waterway under "strict Iranian control." These developments have caught shipping companies off guard, just a day after the Iranian Foreign Minister declared the strait fully open to merchant ships, a statement praised by President Trump.Domestic News: 1. Two Chinese citizens tragically died in a car accident in the Russian Far East. 2. The Eastern Theater Command conducted joint combat readiness patrols in relevant sea and air areas of the East China Sea. 3. Rumors circulating online that "new environmental regulations have increased chicken farming costs, leading to higher egg prices" are false. 4. The 27th meeting of the China-Switzerland Joint Economic and Trade Committee was held in Bern, Switzerland. 5. Eight departments, including the Ministry of Public Security, stated that they will maintain a high-pressure stance against tax-related crimes such as issuing false invoices and tax evasion. 6. Seven e-commerce platforms expressed their sincere acceptance of the State Administration for Market Regulations penalties and their determination to fulfill their food safety responsibilities. 7. DeepSeek is reportedly launching its first external financing round? An executive from a large state-owned equity institution stated that the news is likely true, but they are currently unable to invest. International News: 1. The US Department of Energy will release the third batch of strategic petroleum reserves. 2. Progress has been made in a new round of dialogue between the Congolese government and anti-government forces. 3. Iraq stated that oil exports from all its oil fields will resume within days. 4. ECB Governing Council member Demarco stated that the ECB is not in a hurry to act and will receive more information in June. 5. According to the Wall Street Journal: The U.S. Department of Justice informed French law enforcement that it will not assist them in investigating Elon Musks social media platform X. 6. Iran Situation—① Iran: Due to the U.S. "breach of promise," it will control passage through the Strait of Hormuz until the war is completely over. ② Iran stated that it has not yet agreed to hold the next round of negotiations with the U.S. ③ Trump: The U.S. and Iran are in dialogue, and there will be news before the end of today. Iran cannot blackmail us by closing the strait again. ④ In contact with maritime intelligence: The Iranian Revolutionary Guard fired on oil tankers attempting to cross the Strait of Hormuz. ⑤ According to the Wall Street Journal: U.S. officials said that the U.S. military is prepared to board and seize ships linked to Iran in international waters in the coming days.According to the Wall Street Journal, U.S. officials say the U.S. military is prepared to board and seize Iranian-linked vessels and merchant ships in international waters in the coming days.On April 18, the Security Service of Ukraine (SBU) announced on social media that it had struck three Russian warships in Crimea. The SBU stated that the struck warships included the Russian Navys large landing ships "Yamal" and "Azov," as well as a warship of unidentified type. Other reports indicated that a Russian Project 21980 anti-sabotage boat "may have been hit."On April 18, Naghdi, an advisor to the commander-in-chief of Irans Islamic Revolutionary Guard Corps, said in an interview that Irans missile and drone production is still ongoing.

EUR/USD Trades in a 1.0780-1.0800 Range as Attention Turns to Fed Chairman Powell and ECB President Lagarde's Speeches

Drake Hampton

Apr 20, 2022 09:49

The EUR/USD pair is trading sideways within a narrow range of 1.0780-1.0798 as the US dollar index (DXY) maintains its stability following an attack on the round level resistance of 101.00 during the Asian session. Market players are anticipating Thursday's dictations from Federal Reserve (Fed) Chairman Jerome Powell and European Central Bank (ECB) President Christine Lagarde.

 

The asset has been drifting lower this month, owing to the Fed's and ECB's divergent approaches to their different interest rate policies. On the one hand, the Fed appears to be torn between a 50-basis-point (bps) or 75-basis-point (bps) rate hike and a 75-basis-point boost, despite the fact that a rate hike is impending to limit the inflation issue.

 

Meanwhile, supply chain constraints and rising energy prices have left the ECB with no choice but to maintain a neutral position. Following Russia's invasion of Ukraine, the eurozone has seen sluggish growth, which is projected to persist for an extended period. Increased energy expenditures reduce households' real incomes and, as a result, their trust in the European economy. This has also fueled fears of stagflation in Europe, complicating the ECB's decision-making.

 

Investors will be watching the publication of the Eurozone's Industrial Production during the Europe session. Monthly Industrial Production is predicted to come in at 0.7 percent, while the catalyst may come in at 1.5 percent on a yearly basis.

EUR/USD

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