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The final annualized GDP growth rate for the third quarter and the preliminary monthly CPI growth rate for November in France will be released in ten minutes.On November 28th, Stephen Jen, a hedge fund manager at Eurizon SLJ Capital, believes the pound could plummet as the UK approaches a tipping point where higher taxes no longer generate additional revenue for the government. Jen predicts the pound will depreciate against similar currencies such as the euro, yen, and Swiss franc. This is because he argues rising taxes are deterring wealthy individuals and businesses from operating in the UK. Jen stated, "Taxing the more productive part of the economy to subsidize the less productive part might achieve social goals, but from a purely economic efficiency perspective, its not a good thing." Known for his "dollar smile" theory, Jen believes the UKs long-term prospects are far from bright. He emphasizes that the pound and dollar are his most bearish G10 currencies, while he believes the Swiss franc and gold have long-term value.Liberal Democratic Party Secretary-General Shunichi Suzuki said on Friday that the ruling coalition led by Prime Minister Sanae Takaichi has added three independent lawmakers, securing a majority in the more powerful House of Representatives.November 28th - Japan will allocate approximately 252.5 billion yen ($1.6 billion) in additional budget to further support the development of artificial intelligence and semiconductors. According to a ruling party lawmaker and the Ministry of Economy, Trade and Industry, this amount is significantly lower than the approximately 1.5 trillion yen allocated in last years supplementary budget, as the government is expected to begin securing the majority of additional funding for these sectors in future regular budgets. This is expected to provide more stable funding for these industries.According to official news from HarmonyOS, Zhijie Auto delivered more than 10,000 vehicles in November, marking the second consecutive month with deliveries exceeding 10,000 vehicles.

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

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Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers. 

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.


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