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March 24th - ING economists stated that the Bank of Japan may ignore the recent slowdown in inflation and focus instead on price risks. Initial wage negotiations were encouraging, and the Middle East conflict appears to have had little impact. The decline in the preliminary PMI reflects recent oil supply shocks and a decrease in new orders, which has indeed increased concerns about the outlook. However, the overall data remains above 50, indicating that businesses believe geopolitical risks are temporary. Stubborn core inflation, PMI data, and wage negotiations increase the likelihood of an April rate hike, but the specific timing remains uncertain. The Middle East situation will play a key role in the Bank of Japans decision-making. If the situation stabilizes and there are no signs of a decline in production or consumption, an April rate hike would be more likely.Philippine Economic Planning Secretary: If oil prices continue to rise, this years inflation rate may exceed the target range of 2% to 4%.US Critical Minerals Advisor Kroon: The US will continue to provide financing support for Australias strategic metals projects.Fitch: If oil prices rise to $128 per barrel in the second quarter of 2026 and to $100 per barrel for the whole of 2026, some sovereign countries in the Asia-Pacific region may face negative rating pressure.On March 24, Li Chenggang, Vice Minister of Commerce and International Trade Representative, met with Temasek Holdings Chairman Zhang Zhixian on March 23. The two sides exchanged views on Chinas economic development, the international situation, and China-Singapore economic and trade cooperation. Li Chenggang stated that the current world is fraught with uncertainty, with rising unilateralism and protectionism, and escalating geopolitical conflicts severely disrupting the international economic and trade order and impacting international economic and trade cooperation. China firmly supports multilateralism and free trade, upholds the multilateral trading system with the World Trade Organization at its core, promotes a more just and reasonable international economic and trade order, and achieves inclusive economic globalization. Li Chenggang pointed out that Chinas formulation and implementation of the 15th Five-Year Plan will further promote high-level opening-up, using the certainty of high-quality development to address various uncertainties. China will continue to embrace the global market, focusing on building a super-large domestic market to provide more opportunities for multinational corporations. Temasek is welcome to continue investing in China to achieve win-win cooperation.

GBP/USD hits 1.16 because to Truss' fiscal boost and rising BOE rates

Alina Haynes

Sep 06, 2022 15:27

截屏2022-09-06 上午11.21.16.png 

 

GBP/USD receives bids to retest the intraday high above 1.1590 as bulls embrace Lizz Truss' leadership amid expectations of a large stimulus and a push to the Bank of England (BOE). Consequently, throughout Tuesday's Asian session, the Cable pair led the G10 currency pairs with intraday gains of 0.65%.

 

"Incoming Prime Minister Liz Truss has drafted plans to stabilize annual energy and gas costs for a typical UK residence at or below the current level of £1,971," As a result of Russia's decision to shut off gas supplies to Europe in response to sanctions imposed in response to the invasion of Ukraine, she is under pressure to find a solution to increasing energy prices that are crushing individuals and businesses in the United Kingdom.

 

After the results were revealed, Truss declared, "I will submit a solid proposal to cut taxes and stimulate the economy." According to Reuters, UK prime ministerial candidate Truss stated, "I would resolve the energy crisis by tackling people's energy prices and our long-term energy supply problems."

 

Aside from that, her criticism of the BOE's slow response to the fight against inflation is well-known, which suggests that the "Old Lady," as the UK's central bank is often known, will increase interest rates more quickly.

 

The dollar's loss also contributes to the GBP/USD recovery, it should be noted. Despite this, the US Dollar Index (DXY) fell 0.35 percent to 109.43 at press time, failing to justify higher US Treasury yields. In doing so, the dollar index versus the six major currencies extended its drop from yesterday's 20-year high.

 

The decrease in the DXY may also be attributable to the market's cautious optimism, as indicated by mildly optimistic stock futures, in anticipation that global authorities will be able to address the energy crisis. The recent reduction in hawkish Fed predictions, particularly in the wake of Friday's mixed US employment report, provides additional support for the GBP/USD recovery.

 

Alternatively, according to data released by payments provider Barclaycard on Tuesday, a decrease in Consumer Spending investigates the bears. The Financial Times said that "UK consumers cut spending on clothing, home improvement, and cosmetics in August, while business activity declined, a symptom of "collapsing" demand due to the escalating cost of living crisis" (FT).

 

Amid crowded markets, risk catalysts are likely to occupy pair traders in the future. Also essential will be the ISM Services PMI for August, which is predicted to be 55.5 as opposed to the prior reading of 56.7.

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