EUR/USD 1.15855
-0.232%
Gold 4423.90
0.399%
Oil 89.681
1.435%
USD/JPY 158.767
0.208%
GBP/USD 1.33967
-0.306%
GBP/JPY 212.700
-0.036%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On March 24th, at the companys earnings conference, Lu Weibing, head of Xiaomi Group, stated that the speed and magnitude of this round of memory price increases were higher than the company had anticipated, posing a significant challenge to Xiaomis operations. The lower the proportion of memory costs in the overall product cost, the smaller the impact on the product. Xiaomis balanced "people, car, and home ecosystem" allows the company to better cope with rising memory prices. Furthermore, the higher the price of the phone, the smaller the impact. With the advancement of Xiaomis high-end strategy, it can cope better than its competitors. Therefore, although the pressure is significant, Xiaomi is relatively better off; however, if it cannot withstand the pressure in the future, Xiaomi may also raise prices. Lu Weibing believes that more attention should be paid to what will happen after the price increase cycle. He predicts that it will intensify the reshaping of the industry landscape; on the one hand, some companies may even be eliminated; on the other hand, it will force companies to innovate more.Xiaomi Group (01810.HK) President: If companies cannot withstand the pressure from rising memory costs, price increases may be inevitable. In a long-term cycle of continuously rising costs, some companies may face huge losses or even bankruptcy.ECB Governing Council member Kazak: Betting on two rate hikes seems reasonable; lets wait and see.Xiaomi Group (01810.HK) President: The cost increase of memory chips is higher than initially expected.Haidilao (06862.HK): Based on the Group’s operating performance in 2025, the Board of Directors recommends a final cash dividend of HK$0.384 per share for the year ended December 31, 2025.

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