EUR/USD 1.15709
-0.060%
Gold 4210.65
-0.003%
Oil 82.881
-2.644%
USD/JPY 160.200
0.149%
GBP/USD 1.34105
-0.037%
GBP/JPY 214.841
0.121%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On June 15th, former Israeli Ambassador to the US, Aaron Pincus, stated that Iran has become stronger and more confident since the war, and the regional balance facing Israel has clearly shifted unfavorably. He pointed out that by mid-June 2026, Iran will be geopolitically exponentially stronger than it was on the day the war broke out (February 28th), and has altered the regional balance during the war. Pincus warned that Iran has "upended the strategic balance," not only attacking the Arab Gulf states but also driving a wedge between Israel and the United States. He stated that how the post-war balance of power between Israel and Iran will develop remains to be seen, but "it will certainly be different from what it was in February, and less favorable to Israel than before."On June 15, the Iranian Foreign Ministry strongly condemned the Israeli regimes terrorist act of military aggression against a residential area in the southern suburbs of Beirut this afternoon (June 14). The attack has resulted in casualties among Lebanese citizens. The Iranian Foreign Ministry stated that this terrorist crime not only blatantly violated Lebanons national sovereignty and territorial integrity but also seriously contravened the ceasefire understanding reached between Iran and the United States on April 8. Iran reiterated that the US government bears direct responsibility for the Israeli regimes crimes and repeated violations of the ceasefire, and emphasized that it will take all necessary measures to exercise its legitimate right to self-defense. Iran warned that the dangerous consequences of the Israeli regimes frivolous actions on regional peace and security should be borne by the United States and the Israeli regime.Iranian Parliament Speaker: The enemy can never defeat any resistance front alone.The Democratic Republic of Congo (DRC) has reported that the number of confirmed Ebola cases has risen to 782.According to Irans Mehr News Agency, the Iranian Civil Aviation Authority stated that it has not issued any new flight notices to restrict domestic flights.

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

 GBP:USD.png

 

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.

Suggestion