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On January 19th, at a press conference held by the State Council Information Office, Kang Yi, Director of the National Bureau of Statistics, stated that the current low level of CPI is related to both the complex changes in the domestic and international macroeconomic situation and my countrys stage of development. The slowdown in growth in some traditional sectors is also affecting prices in some industries, and changes in the external environment have increased pressure on domestic price adjustments. However, these are all temporary. It is important to recognize the effectiveness of policies aimed at expanding domestic demand, the moderate rebound in core CPI, the stimulus from the trade-in program for consumer goods, the effectiveness of capacity control measures in some industries, the improvement in supply and demand in some sectors, and the recovery in prices of related products.On January 19th, Zhai Shanqing, Director of the Fixed Asset Investment Statistics Department of the National Bureau of Statistics, stated that the large-scale equipment renewal policy continues to exert its effects, with a significant driving force for investment in equipment and tools. In 2025, investment in equipment and tools will increase by 11.8% year-on-year, contributing 1.8 percentage points to the overall investment growth; and accounting for 18.0% of total investment, an increase of 2.5 percentage points from the previous year.On January 19, UN High Commissioner for Human Rights Volker Türk called on all parties to the armed conflict in Sudan to effectively protect civilians and civilian infrastructure, and to ensure unimpeded access for humanitarian aid to all parts of Sudan. Speaking in Port Sudan, an eastern city, Türk stated that attacks on critical civilian infrastructure are a serious violation of international humanitarian law and could constitute war crimes. He urged all parties to the conflict to immediately cease attacks on civilian facilities such as markets, hospitals, schools, and refugee camps, and to provide safe passage for civilians to move freely.On January 19, the Hurun Research Institute released the "2025 Hurun China AI 50" report, which showed that Cambricon, an AI chip company, ranked first with a value of 630 billion yuan, an increase of 165% over the previous year; Moore Threads, the first domestic GPU company to go public, ranked second with a value of 310 billion yuan; and Muxi, one of the first high-end GPU companies in China to achieve full-process localization, ranked third with a value of 250 billion yuan.On January 19th, according to Qichacha APP, Beijing Zhongke Aerospace Technology Co., Ltd. recently applied for and published a patent for "A System with a Robust Recovery and Stable Landing Auxiliary Support Structure". The patent abstract shows that this disclosure relates to the field of rocket recovery and stable landing auxiliary technology, including: a conical capture frame part and an external support connection part; the conical capture frame part and the external support connection part are respectively fixedly installed on the ground; the conical capture frame part includes: a large conical capture frame and a single-leg support mechanism; the large conical capture frame has a conical structure and is a vertically continuous structure; this device utilizes the cooperation between the conical capture frame part and the external support connection part to achieve stable rocket recovery. Utilizing a funnel-shaped structure, the rocket is recovered to the center of the device through an inclined plane, increasing the range of rocket landing position positioning points and reducing recovery difficulty.

The EURGBP sustains modest gains over the mid-0.8700s, but lacks bullish conviction

Daniel Rogers

Nov 14, 2022 18:48

The EURGBP cross advances for a second day in a row on Monday and continues its modest intraday gains into the start of the European session. The cross is currently located above the middle of 0.87, but lacks bullish conviction and follow-through buying.

 

The common currency continues to receive some support from wagers on an aggressive policy tightening by the European Central Bank (ECB). In contrast, the negative economic projection for the United Kingdom devalues the British Pound. In reality, the National Institute of Economic and Social Research (NIESR) projects that the United Kingdom's fourth-quarter GDP growth would be flat and the likelihood of a recession remains high. It is thought that this will strengthen the EURGBP cross.

 

However, the chance that the Bank of England will increase interest rates further operates as a tailwind for the British pound. Aside from this, a slight US Dollar recovery from a near three-month low exerts some pressure on the Euro and, at least for the time being, limits any meaningful gain for the EURGBP cross. Ahead of this week's crucial UK macro data - the monthly jobs report on Tuesday and the CPI report on Wednesday - traders remain reluctant to place risky wagers.

 

The Monetary Policy Report Hearings at the Bank of England on Wednesday and the Autumn Statement by Chancellor Jeremy Hunt on Thursday will provide markets with extra advice. This will play a vital role in shaping the near-term GBP sentiment and the next leg of the EURGBP cross's directional move. In the lack of market-moving economic data from either the Eurozone or the United Kingdom, it is anticipated that spot prices would stabilize within a range.