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Iranian Foreign Ministry spokesman Bagaei: The US blockade of Iranian ports and coastline is a violation of the ceasefire and is illegal.On April 19th, a symposium on Chinas Internet Development was held in Beijing. The meeting emphasized the need for an inclusive and open-minded approach, urging participants to be promoters of integrated development. It stressed the importance of proactively opening up technology, data, and market resources to drive the development of upstream and downstream enterprises in the industrial chain and build a healthy ecosystem for the integrated development of large, medium, and small enterprises. The meeting also emphasized the need for a commitment to real-world industries, acting as enablers of industrial upgrading. It called for forward-looking planning for the construction of new infrastructure such as 6G and intelligent internet, cultivating and expanding emerging industries, proactively planning for future industries, and accelerating the development of the intelligent economy. Finally, the meeting stressed the need for a sense of social responsibility, striving to be practitioners of compliance and ethical conduct.On April 19, the Iranian Civil Aviation Organization announced that it had approved the resumption of international passenger flights at Mashhad Airport starting April 20. It is understood that Iran had announced the opening of some airspace on April 18 and had gradually resumed operations at several airports, including Mashhad.On April 19, US President Trump signed a bill on April 18, extending a controversial surveillance bill until April 30. The core of the controversy lies in Section 702 of the Foreign Intelligence Surveillance Act, which allows agencies such as the CIA, NSA, and FBI to collect and analyze large amounts of overseas communications without warrants or authorization. In this process, these agencies may also intercept communications of US citizens who have dealings with foreign surveillance targets.On April 19, a statement indicated that Israeli intelligence confirmed a Hezbollah militant group opened fire on UNIFIL personnel clearing unexploded ordnance in southern Lebanon on April 18, killing one peacekeeper and injuring three others. UNIFIL issued a statement on April 18 stating that a peacekeeping patrol was attacked by armed men in southern Lebanon that morning, resulting in the death of one peacekeeper and injuries to three others, two of whom were seriously wounded. Preliminary assessments suggest the attackers may be members of Hezbollah. Hezbollah issued a statement on April 18 denying any involvement in the attack on UNIFIL in southern Lebanon.

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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