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On August 2, Russias First Deputy Permanent Representative to the United Nations, Konstantin Polyansky, stated at a Security Council meeting that UN staff were unwilling to take seriously the Ukrainian militarys attack on Russian civilian facilities, which undermined the UNs authority. He said: "In this case, the relevant staff of the UN Secretariat acted with extreme hypocrisy, feigning ignorance and evading responsibility by claiming they could not verify the authenticity of the information about Ukrainian crimes. All of this clearly undermined the authority of our global organization."On August 2nd, a full year since the Bank of England began its interest rate-cutting cycle, despite four consecutive rate cuts and the likelihood of further cuts, British households continue to face the highest borrowing costs in a generation. Analysis of Bank of England savings and mortgage data shows that Britons are spending £11 billion (US$14.5 billion) less annually than in July of last year. This loss stems primarily from two factors: First, the rate cuts have hit savers hard, significantly reducing the returns on their savings. Second, many homeowners have yet to benefit from the rate cuts, as they are still waiting for mortgages locked in during periods of high interest rates to expire. Edward Allenby, an economist at Oxford Economics, said: "Against the backdrop of slowing real wage growth and tighter fiscal policy, the lagged impact of past rate hikes on mortgage holders will continue to dampen consumption. The Bank of Englands rate-cutting cycle is unlikely to provide a significant boost to business investment and consumer spending over the next few years."DeepBlue Auto: Global deliveries of 27,169 vehicles in July, a year-on-year increase of 62%.On August 2, CNN reported that the United States plans to conduct the first large-scale test of its Golden Dome missile defense system before the 2028 presidential election, allowing the current administration to promote it as a political achievement during the campaign. The report indicated that the test is tentatively scheduled for the fourth quarter of 2028. An unnamed US Department of Defense official stated that this timeline indicates that Republicans want to have a demonstration to show during the November election. He also noted that completing the systems test preparations within such a tight timeframe is an "extremely challenging task," especially given the high technical complexity of deploying a new missile interceptor system. This test may only be the first phase of the Golden Dome project, and full deployment will take much longer.YouGov poll: Most Americans believe tariffs hurt American consumers; only 22% blame foreign manufacturers.

GBP/JPY Nears 161.50 As Risk-On Sentiment Roughens The Waters

Daniel Rogers

Mar 20, 2023 13:25

GBP:JPY.png 

 

In the early hours of Monday's Asian session, GBP/JPY appreciated as Japanese Yen demand waned in response to rising liquidity optimism. Monday's improvement in risk appetite was the consequence of a global effort to end the liquidity crisis of the previous week.

 

In order to restore confidence in the financial system, several major central banks, including the Bank of Japan (BoJ) and the Bank of England (BoE), have coordinated efforts to dilute the global banking ecosystem with US Dollars. This is the reason why the transition line has been implemented.

 

This swap line's principal source of financing is the Federal Reserve (Fed); the Fed will lend US Dollars to other central banks in exchange for local currency as a short-term loan. The exchange line will begin on Monday and continue through April.

 

Sunday, the Bank of England issued a statement welcoming the Swiss government's decision to merge Credit Suisse and UBS Group and reiterating that the UK banking system is adequately capitalized and funded. The Bank of England (BoE) will make a decision regarding interest rates on Thursday, and it will be crucial to observe their future direction. Given the ongoing liquidity crisis, this may be the last time the BoE raises interest rates.

 

March meeting of the Bank of Japan The previously released Summary of Opinions contains no new information, as the Federal Reserve has maintained an extremely permissive monetary stance for decades. In addition, Japanese Finance Minister Shunichi Suzuki stated on Monday that he was closely monitoring market movements in the wake of Credit Suisse Group's rescue agreement over the weekend.

 

This week, it is also crucial to monitor the liquidity situation, citing reports that two European banks are under close observation. Therefore, it is probable that upward advances in the GBP/JPY pair will continue to be fragile.