EUR/USD 1.14181
0.039%
Gold 4056.77
1.230%
Oil 83.375
1.355%
USD/JPY 162.731
0.152%
GBP/USD 1.34081
-0.164%
GBP/JPY 218.198
-0.009%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
July 21 – Nuveen Global Investment Strategist Laura Cooper stated in a report that the European Central Bank (ECB) is likely to keep interest rates unchanged at its meeting this week after the June rate hike, but will maintain a tighter tone. Cooper said the ECB would remain open to further tightening if renewed tensions drive up energy prices. She said inflation is more moderate than feared, with little sign of renewed acceleration in the Purchasing Managers Index (PMI) pricing sub-index, while producer price data confirms that upstream cost pressures are easing. “These factors provide a reason to hold rates steady this month,” she said. The complexity lies in renewed disruptions to commodity supplies, which could reignite energy price pressures at a time when the ECB is gaining confidence in the path of declining inflation.According to the Joint Oil Data Institute (JODI), Saudi Arabias domestic refineries increased crude oil processing by 175,000 barrels per day in May, reaching 2.386 million barrels per day.According to the Joint Oil Data Institute (JODI), Saudi Arabias crude oil inventories increased by 2.827 million barrels in May, reaching 142.794 million barrels.According to the Joint Oil Data Institute (JODI), Saudi Arabias direct crude oil burning increased by 107,000 barrels per day in May, reaching 647,000 barrels per day.According to the Joint Oil Database (JODI), Saudi Arabias petroleum product exports increased by 74,000 barrels per day in May, reaching 1.083 million barrels per day.

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