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Real-time News
The IEA will release its monthly oil market report in ten minutes.April 14th - Wealthy Middle Easterners are flocking to high-end European real estate hotspots as fears of war have spurred increased demand for temporary rentals and long-term accommodations. Real estate agents from London, Monaco, Switzerland, and the upscale Spanish resort of Marbella report increased interest in properties, with clients ranging from multi-millionaire traders to social media influencers, and families looking to relocate or permanently overseas before the Middle East conflict ends. They say investors who might have poured their money into the hottest Gulf property market are now looking for alternatives as the war has dragged on for two months.Qatar and Saudi Arabia emphasized the need to "consolidate" the US-Iran ceasefire.On April 14, Foreign Ministry Spokesperson Guo Jiakun held a regular press conference. Some South Korean media reported that the Taiwan authorities had previously expressed dissatisfaction with South Korea labeling Taiwan as "Taiwan, China" in the Taiwan issue selection option. What is Chinas comment on this? Guo Jiakun emphasized that Taiwan is part of China, and labeling it as "Taiwan, China" is perfectly reasonable. Chinas position on the Taiwan issue is clear and consistent. We hope the South Korean government fully recognizes that the Taiwan issue concerns the national sentiment of more than 1.4 billion Chinese people, adheres to the spirit of the China-South Korea Joint Communiqué on the Establishment of Diplomatic Relations, upholds the one-China principle, resists and opposes any form of "Taiwan independence," and works with China to promote the healthy and stable development of China-South Korea relations with concrete actions.On April 14th, Ling Ji, Vice Minister of Commerce and Deputy Representative for International Trade Negotiations, met with Lopez, Secretary of State for Trade at the Spanish Ministry of Economy, Trade and Enterprise, who accompanied Spanish Prime Minister Sánchez on his visit to China. The two sides exchanged views on China-Spain economic and trade relations. Ling Ji stated that in recent years, under the strategic guidance of the leaders of both countries, China-Spain economic and trade cooperation has maintained a stable and healthy development trend. Bilateral trade volume is expected to reach a new high by 2025, two-way investment is progressing steadily, and cooperation between the two countries industrial supply chains is continuously deepening. Chinas 15th Five-Year Plan outlines the overall deployment for building a strong domestic market and expanding high-level opening-up over the next five years, which will provide broad development opportunities for enterprises from Spain and other countries. He hoped that both sides would fully utilize the China-Spain Joint Committee on Economic and Industrial Cooperation mechanism, and welcomed Spains active participation in exhibitions such as the China International Import Expo and the China International Fair for Investment and Trade, to continuously explore the potential for trade and investment cooperation.

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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