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Germanys October PPI rose 1.8% year-on-year, compared with an expected decline of 1.9% and a previous decline of 1.70%.Germanys October PPI rose 0.1% month-on-month, in line with expectations and down from -0.10% previously.Switzerlands trade balance in October was CHF 4.319 billion, revised from CHF 4.073 billion to CHF 3.99 billion in the previous month.On November 20th, analysts stated that Moodys will review Italys credit rating on Friday, potentially offering its first upgrade in nearly 25 years, reflecting growing market confidence in the public finances of the Eurozones third-largest economy. In May, Moodys upgraded Italys rating outlook from "stable" to "positive," while maintaining its "Baa3" rating, the lowest investment grade. At the time, Moodys cited stronger-than-expected fiscal performance and a more stable political environment as the main reasons for the outlook adjustment. Subsequently, the Meloni government further lowered its 2025 budget deficit target to 3% of GDP, complying with the EUs maximum deficit limit a year ahead of schedule. Since May 2002, when Moodys downgraded Italy from Aa3 to Aa2, it has not upgraded its rating. And since its downgrade in October 2018, it has remained unchanged. UniCredit stated that a potential upgrade would further confirm the continued positive trend in the overall assessment of Italys creditworthiness. Among major rating agencies, Moodys remains the most cautious.Barclays has raised its year-end 2026 target for the S&P 500 to 7,400, up from its previous forecast of 7,000.

GBP/JPY Meets Resistance Near 158.00 As UK GDP Forecasts Weaken

Daniel Rogers

Feb 08, 2023 14:47

GBP:JPY.png

 

The GBP/JPY pair has detected selling attention despite striving to extend recovery above the critical resistance of 158.00 in the Asian session. The less-confident pullback move by the Pound Sterling has been fined and the negative path for the cross has continued.

 

On Tuesday, the cross was heavily dumped by the market participant. Additionally, Bank of Japan (BoJ) officials admitted a covert operation to support the Japanese Yen.

 

Meanwhile, the impact of appointing BoJ Deputy Governor Masayoshi Amamiya as BoJ Haruhiko Kuroda's replacement has begun to be felt on the street. OCBC analysts examined the impact of each contender for BoJ's new leadership on the Japanese yen.

 

According to a letter from OCBC, "this week's focus will be on the list of BoJ nominees that is anticipated to be handed to parliament on 10 February, however reports indicate a postponement until next week." Amamiya’s appointment would be most advantageous to the Japanese Yen upward but Yamaguchi’s appointment might drag down Yen’s strength.

 

On the front of the United Kingdom, the Bank of England (BoE) has failed to meaningfully lower inflationary pressures despite being an early adopter of tight monetary policy throughout the pandemic and pushing interest rates to 4%. As a result of their inability to meet key expenses, households are suffering from the effects of a growing cost of living.

 

As reported by Reuters, according to a report from Britain's National Institute for Economic and Social Research (NIESR), "one in four British households would be unable to pay for food and energy without using up savings, borrowing, or seeking other assistance in the 2023/24 financial year, up from one in five in the current year."

 

The agency has cut its predictions for the Gross Domestic Product (GDP) from 0.7% to 0.2% and from 1.7% to 1.0% for 2024. Governor of the Bank of England Andrew Bailey's decision to boost interest rates in order to attain price stability has lowered the scale of economic activities.


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