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On August 13, Ukrainian President Zelensky is leading his team to do their utmost to influence Trumps thinking before the Trump-Putin meeting. According to U.S. officials, because a series of phone calls in the past six months have yielded little results, Trump is eager to communicate face to face with Putin to judge his willingness for peace talks. U.S. officials believe that if Trumps words sometimes seem pro-Russian, it is because he believes that such public statements will help to facilitate an agreement. One official said that Trump is still "annoyed with Putin" and said: "For several months, the general view has been that we can destroy the Russian economy tomorrow. Of course, there are more ways to destroy Ukraine. But if he chooses sides, he will hit the Russian economy first. He is really fed up." The official added that even if diplomatic efforts fail, Trump will still support Ukraine by selling weapons to NATO countries. "Maybe Trump cant do it, but he will try his best."Russia announced a monthly production cut of 85,000 barrels per day from July to November, with an additional cut of 9,000 barrels per day in December.The U.S. MBA mortgage application activity index was 281.1 in the week ending August 8, compared with 253.4 in the previous week.The U.S. MBA 30-year fixed mortgage rate was 6.67% in the week ending August 8, compared with 6.77% in the previous week.The MBA mortgage refinancing activity index in the United States for the week ending August 8 was 956.2, compared with 777.4 in the previous week.

GBP/USD perceives barriers below 1.1980 as Fed hawks strengthen risk-averse sentiment

Daniel Rogers

Nov 29, 2022 15:13

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The GBP/USD pair has faced selling pressure around 1.1976 during the Tokyo session. The brief Cable recovery from the 1.1940 support level has terminated as hawkish remarks from Federal Reserve (Fed) policymakers have strengthened the risk aversion theme.

 

The US Dollar Index (DXY) has resumed its advance after a retracement to approximately 106.60. Futures on the S&P500 have rebounded marginally during the Asian session, although a reversal is still quite distant. In the interim, rates on 10-year US Treasury securities have rebounded to approximately 3.69 percent.

 

As investors feel the slowing in the interest rate hike is not indicative of a suspension in policy tightening, US Treasury bonds have regained its alpha. Policymakers at the Federal Reserve (Fed) expended much effort to reach an inflation rate of 2%, yet the headline inflation rate in the United States is 7.7%.

 

Thomas Barkin, president of the Richmond Fed Bank, remarked on Monday, as reported by Reuters, that he favors fewer future interest rate hikes as the central bank works to decrease overly high inflation.

 

According to Financial Times, Loretta Mester, president of the Cleveland Fed Bank, believes the Federal Reserve is not close to stopping its rate hikes. She highlighted that additional favorable inflation statistics and indications of moderation are required prior to establishing a plan to halt rate hikes.

 

In the future, the US Gross Domestic Product (GDP) numbers will be closely scrutinized. The third quarter GDP estimate is anticipated to remain unchanged at 2.6%. As the Fed is devoted to achieving price stability, it is strongly recommended to reduce the growth rate. A period of rising growth rates will continue to keep inflation in check, as a robust GDP indicates robust demand from individuals, which does not translate to a decline in price rise.

 

Economists at Danske Bank have concluded that the United Kingdom has officially entered a recession. Expectations are for four consecutive quarters of negative GDP growth, with growth not resuming until the fourth quarter of CY2023.


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