EUR/USD 1.17004
-0.100%
Gold 4592.72
-0.097%
Oil 97.472
-0.011%
USD/JPY 159.690
0.048%
GBP/USD 1.35055
-0.089%
GBP/JPY 215.674
-0.033%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Volvo Cars CEO: (Regarding the US market) We underestimated the impact of subsidy removal on plug-in hybrid vehicles, resulting in a significant drop in sales.Volvo Cars CEO: We expect performance to begin to improve in China as we launch new versions of our locally developed cars, such as the XC70, to cover a wider market segment.Adidas: Sales have declined in several Middle Eastern countries due to the impact of the conflict.On April 29th, Citigroup Chief Economist Josh Williamson stated that weak core inflation data in Australia during the first quarter masked inflationary pressures stemming from the Middle East conflict. He indicated that high oil prices could increase inflationary pressures, potentially pushing overall inflation to 5.5% by mid-year, while core inflation would reach 3.8%. Williamson added that the Reserve Bank of Australia (RBA) is likely to raise its inflation forecast in May and raise interest rates in May and June, ultimately reaching a rate of 4.6%.On April 29th, Mike Sanders, Head of Fixed Income at Madison Investments, stated in a report that the market will be focused on how Federal Reserve Chairman Jerome Powell describes the committees consensus view on recent inflation and the future policy path, especially as Powells term as chairman is drawing to a close. "With rising oil prices potentially leading to persistently high inflation, investors will want to know as much as possible about the committees view on the balance of risks," he said. He added that the labor market is "okay, but not great," but rate cuts in a high-inflation environment would have a significant impact on the yield curve and the overall economy, while a near-term rate hike is not expected.

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