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On September 8, Foreign Ministry Spokesperson Mao Ning held a regular press conference. Mao Ning stated that there is only one China in the world, and Taiwan is an inseparable part of Chinas territory—an unshakeable historical and legal fact. UN General Assembly Resolution 2758 solemnly affirms the one-China principle, explicitly restoring all the rights of the Peoples Republic of China and clarifying that China has only one seat in the United Nations; there is no such thing as "two Chinas" or "one China, one Taiwan." Taiwan has never been a country, and it will never be. The Lai Ching-te administrations wanton distortion of UN General Assembly Resolution 2758 once again exposes its separatist nature of "Taiwan independence." Its fallacies cannot change the historical and legal fact that both sides of the Taiwan Strait belong to one China, nor can they shake the international communitys firm commitment to the one-China principle.September 8th – On September 8th, Foreign Ministry Spokesperson Mao Ning held a regular press conference. A Reuters reporter asked, “India is about to host the 18th BRICS Summit. Who will China send to this summit? What are China’s expectations for this summit?” Mao Ning stated that China attaches importance to BRICS cooperation and supports India in successfully hosting this year’s leaders’ summit. “However, I have no information to provide on your specific question at this time,” Mao Ning said.September 8th - With the resumption of oil transport through the Strait of Hormuz, Kuwaiti crude oil exports have recovered to approximately 1 million barrels per day, including ship-to-ship transshipment outside the strait. Sabah, Managing Director of International Marketing at Kuwait Petroleum Corporation (KPP), stated that the company is also delivering directly to customers. Currently, they are using both their own tankers and chartered vessels to transport oil. As more tankers find routes through the Strait of Hormuz, Kuwaiti crude oil exports have recovered to nearly two-thirds of last years average daily export of 1.6 million barrels. Kuwaiti crude oil exports had fallen to multi-year lows since the outbreak of the Iraq War in late February.According to the Bahrain News Agency: Bahrain strongly condemns the Houthi attacks on Saudi civilians and key facilities once again.A Russian-appointed official said that the attack by Ukraine on Russian-controlled Crimea has killed two people and injured one.

GBP/USD falls to around 1.2370 as the BoE considers taking swift action ahead of UK inflation and US purchasing managers' indices

Alina Haynes

Apr 17, 2023 13:53

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On Monday morning, the GBP/USD currency pair retested an intraday low of 1.2390 after extending Sunday's decline from a 10-month high. To provoke adverse after breaking a four-week uptrend, the Cable pair explains the most recent concerns emanating from the United Kingdom (UK) and the optimism surrounding the Federal Reserve (Fed).

 

According to the Financial Times (FT), "The Bank of England is considering a major overhaul of its deposit guarantee scheme, including increasing the amount covered for businesses and compelling banks to pre-fund the system to a greater extent to ensure faster access to cash when a lender collapses."  The revelation fuels banking concerns in the United Kingdom and places pressure on the Cable duo.

 

UK Chancellor Jeremy Hunt's concerns about US subsidies may also be exerting downward pressure on the GBP/USD exchange rate as British firms rush to claim benefits before leaving the country. According to the news, "Chancellor Jeremy Hunt warned Sky News that Britain should be wary of any new subsidies, warning that they could undermine the economy and possibly even spark a protectionist trade war."

 

A larger-than-expected decline in US retail sales was unable to offset positive data from US industrial production and the University of Michigan's (UoM) consumer confidence index from the previous day. Despite this, US retail sales decreased by 1.0% in March compared to the predicted -0.4% decline and February's -0.2% decline. As opposed to the 0.2% market consensus and previous reading, Industrial Production increased by 0.4% in the month in question. The preliminary result of the University of Michigan's (UoM) Consumer Confidence Index for April, which increased to 63.5 from 62.0 analysts' expectations and previous readings, was also encouraging. In addition, inflation forecasts for the next year increased from 3.6% in March to 4.6% in April, while inflation forecasts for the next five years decreased by 2.9% during the same month.

 

Notably, Fed officials have recently appeared more hawkish than their BoE counterparts, which has exerted additional pressure on the GBP/USD exchange rate.

 

In this environment, the S&P 500 Futures exhibit modest gains following Wall Street's pessimistic close, while bond yields remain unchanged following weekly increases.

 

Moving forward, the current week is crucial for GBP/USD speculators as it contains a variety of high-quality inflation, employment, and UK PMI data. These data may be used to support the Bank of England's (BoE) officials' waning hawkish inclination and may keep bears in play. However, the US PMIs and Fed discussions should not be disregarded when looking for clear guidelines.

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