EUR/USD 1.14071
0.083%
Gold 4137.43
1.467%
Oil 84.675
0.568%
USD/JPY 163.127
-0.036%
GBP/USD 1.33861
0.089%
GBP/JPY 218.368
0.066%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On July 22, Japans imports surged 25.4% year-on-year in June, reaching a record 11.3 trillion yen (approximately US$69.25 billion), driven by a weaker yen and soaring oil prices. This increase exceeded market expectations of 21% and was the fastest pace since November 2022, resulting in a trade deficit of 406.9 billion yen (approximately US$2.49 billion) in June, far exceeding the previously predicted 120 billion yen. While crude oil imports declined by 13.7% year-on-year, the import value surged by 59.3%, with yen-denominated unit prices also reaching a record high, highlighting that current inflationary pressures are largely driven by exchange rate factors rather than demand growth. This means that the yens appreciation has a more significant effect on alleviating import cost pressures than potential short-term changes in oil demand. On the export side, the resilience of demand from data centers related to artificial intelligence provides the Bank of Japan with real economic growth support that can be used to offset inflationary risks. This combination of factors suggests that the Bank of Japan is more likely to adopt a cautious, gradual interest rate hike path rather than a sudden and sharp tightening of policy. The market currently expects the Bank of Japan to keep interest rates unchanged next week, but will maintain its tightening policy stance.Malaysias Deputy Finance Minister: If crude oil prices are $90 per barrel, the monthly subsidy program for 95-octane gasoline will be RM2 billion, and the diesel subsidy will be RM1.5 billion.July 22 – According to the Fujian Provincial Bureau of Statistics, based on the unified accounting results for regional GDP, the provinces GDP in the first half of the year reached 2,931.582 billion yuan, a year-on-year increase of 4.0% at constant prices. Specifically, the added value of the primary industry was 125.979 billion yuan, a year-on-year increase of 3.6%; the added value of the secondary industry was 1,247.608 billion yuan, an increase of 3.8%; and the added value of the tertiary industry was 1,557.995 billion yuan, an increase of 4.1%.Mitsubishi Electric and Sony Semiconductor Solutions have formed a joint venture to focus on artificial intelligence vision sensors for industrial manufacturing.July 22 – This morning (July 22), the State Council Information Office held a press conference to introduce the implementation of the 15th Five-Year Plan, accelerate the modernization of customs, and contribute to the construction of a strong trading nation. Ports are gateways to the outside world. During the 15th Five-Year Plan period, customs will accelerate the implementation of key border port projects under the national 15th Five-Year Plan, simultaneously implement the 57 port facility renovation projects under the 15th Five-Year Plan, and speed up the construction of railway ports such as Turugart and Ganqimaodu. This will help further optimize the layout of port opening.

The EUR/GBP exchange rate recovers above 0.8000 in advance of Eurozone inflation and UK gross domestic product

Alina Haynes

Mar 30, 2023 16:05

 EUR:GBP.png

 

The EUR/GBP pair extended its recovery above 0.88 during the Asian trading session. Anticipating that the European Central Bank (ECB) will continue to raise interest rates to combat persistent inflation, the cross has depreciated progressively. Friday will see the publication of preliminary Eurozone Harmonized Index of Consumer Prices (HICP) and Gross Domestic Product (GDP) (Q4) figures. Prior to the publication of these figures, it is anticipated that the asset will exhibit explosive activity.

 

It is anticipated that the preliminary Eurozone HICP will decelerate significantly from 8.5% to 7.3%. While it is anticipated that the core HICP will rise to 5.7% from 5.6% in the previous release. Weak energy prices are anticipated to have a significant impact on Eurozone inflation. In light of Christine Lagarde's prediction that inflation will remain elevated for an extended period of time, the European Central Bank (ECB) is expected to continue tightening monetary policy.

 

In the interim, banking tensions are subsiding as the absence of information regarding additional collateral damage has a positive impact on the market. Chief Economist Philip Lane stated on Wednesday that ECB interest rates must rise if banking tension has no or a "relatively limited" impact.

 

Investors avidly anticipate the United Kingdom's Gross Domestic Product (GDP) data. According to the consensus, the United Kingdom's growth in the fourth quarter of CY2022 remained unchanged. It is anticipated that the annual GDP will remain unchanged at 0.4%. It is expected that the British economy will undergo a severe recession as a result of high inflation and sluggish growth.

 

The Bank of England (BoE) policymakers appear confident that inflation will moderate in the near future and that the unexpected rise in February's inflation was a one-time anomaly; however, the absence of evidence raises doubts. If inflation persists, BoE Governor Andrew Bailey stated that additional rate increases would be announced. In contrast, Bank of America (BoA) analysts anticipate that the Bank of England (BoE) will not increase rates and will maintain current levels until 2024.


Suggestion