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On February 11, the Ministry of Culture and Tourism released the "Measures for Handling Tourism Complaints." The measures stipulate that local cultural and tourism authorities at the county level and above should, under the leadership of the peoples government at the same level, establish and improve a working mechanism for handling tourism complaints in conjunction with relevant administrative departments, consumer organizations, and peoples mediation organizations. When handling tourism complaints, if a tourism operator or their employees are suspected of violating laws, regulations, or rules, the tourism complaint handling agency should promptly take action in accordance with the law. For complaints falling within the agencys jurisdiction, administrative penalties should be imposed according to law; for complaints outside the agencys jurisdiction, written notification should be promptly given and the case transferred to the relevant departments for investigation and handling; if a crime is constituted, criminal liability should be pursued according to law.According to Irans Nour News, Shamkhani, an advisor to Irans Supreme Leader, stated that Tehrans missile capabilities are a red line.The Central Bank of Serbia reported that its foreign exchange reserves stood at €29.4 billion at the end of January, an increase of €388 million compared to the previous month.Central Bank of Serbia: As of the end of January, Serbias gold reserves reached a record high of 53.08 tons.February 11 – The European Commission released an action plan to address the drone threat, aiming to support EU member states through coordinated action and complement and support their enhanced defense capabilities. A press release from the European Commission stated that the action plan focuses on the following key priorities: strengthening defense capabilities, enhancing detection capabilities, coordinating response measures, and strengthening EU defense preparedness. The press release indicated that the European Commission will hold discussions with member states regarding the proposed actions and key priorities.

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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