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On August 12th, the Reserve Bank of New Zealand (RBNZ) appeared poised to further cut its official interest rate next week, with economists largely focused on the central banks future forecasts. ANZ chief economist Sharon Zollner stated that a 25 basis point cut to 3.00% appeared certain. As weak high-frequency data increasingly emerged in hard economic data, the RBNZ could shift to a more dovish stance, ultimately lowering the official rate to 2.5%. However, she added that a sudden shift in that direction next week might be premature.The Hang Seng Tech Indexs decline widened to 1%, and the Hang Seng Index is now down 0.37%.On August 12, the Suzhou Housing Provident Fund Management Center issued the "Notice on Further Expanding the Scope of Housing Provident Fund Use." This notice states that if a household applying for a housing provident fund loan (excluding commercial-to-public loans) to purchase their first or second self-occupied home has sold the home, the number of loans can be reduced accordingly. For households using housing provident fund loans to purchase their first or second self-occupied home, the down payment ratio will be adjusted to no less than 15% of the total purchase price. A household providing housing provident fund loans must pay for property management fees for self-occupied homes within the citys administrative area and can apply for a housing provident fund withdrawal from any household property. No housing provident fund withdrawals must have been made in the twelve months prior to the application. Withdrawals can be made once a year, with the total withdrawal amount not exceeding the actual annual property fees paid. Individual housing provident fund accounts must maintain at least one months worth of contributions based on the latest contribution base (excluding new employee subsidies).According to the Wall Street Journal: An explosion at a U.S. Steel (XN) plant killed two people and injured ten.Futures News, August 12th: Crude oil prices have recently stabilized and fluctuated after declining from high levels. The market awaits the US-Russia negotiations, with investors cautiously viewing the talks. There are divergent views on the negotiations, with bulls and bears remaining divided, and the market is generally on the sidelines. As the date of the talks approaches, more and more details are being released. Russia and Ukraine are likely to use territory as a bargaining chip, but this increases the difficulty of the negotiations. Therefore, against this backdrop, crude oil prices are showing resistance to declines, with clear support below, and a volatile market in the short term.

After a Strong Rise Supported by the BOE's Dovish Guidance, EUR/GBP Floats Above 0.8700

Alina Haynes

Dec 16, 2022 11:57

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Following Thursday's trading above the important resistance level of 0.8700, the EUR/GBP pair is exhibiting range-bound behavior during the Tokyo session. After the Bank of England (BOE) sounded dovish on policy advice and the European Central Bank (ECB) announced a hawkish forecast for interest rates, market participants engaged in aggressive cross buying.

 

As expected, BOE Governor Andrew Bailey increased interest rates by 50 basis points (bps) to 3.25 percent. The inflation rate in the United Kingdom is in double digits, and the struggle against persistent inflation will continue for an extended period; hence, policy tightening is essential.

 

As direction for future monetary policy actions, the BOE noted that "the majority of the Monetary Policy Committee (MPC) feels that more bank rate increases may be necessary." The British pound has been subjected to great pressure due to the lack of clarity surrounding future policy tightening. Voting on the interest rate decision, policymakers supported the status quo because they regarded the current interest rate policy to be adequate for fighting inflation.

 

As predicted, ECB President Christine Lagarde raised interest rates by 50 basis points in relation to the Eurozone. Due mostly to rising food prices, the Eurozone's central bank expects inflation to remain well above its 2% target for a lengthy period of time. The ECB has upped its interest rate peak forecast because it anticipates two additional 50 basis point rate hikes.

 

The release of Retail Sales statistics for the United Kingdom will be significant for future forecasting. According to the forecasts, the yearly economic statistics (Nov) would likely decline by 5.6% compared to the previously reported 6.1% decrease. While the monthly data will decline from 0.6% to 0.3%, they were 0.6% in the previous report.


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