Latest financial news

Friday, 22 September 2023

In the latest financial news, the Eurozone economy is facing a potential downturn as business orders continue to decline, hitting a six-month low for the Euro. This decrease in orders suggests a lack of demand for goods and services, which could trigger a cascading effect on the economy. As a result, investors are increasingly betting against further interest rate hikes due to the grim economic outlook.

Despite the strength of the US Dollar and uncertainty surrounding the Federal Reserve’s monetary policy, the price of gold (XAU/USD) has remained stable. This resilience is noteworthy as the value of gold is often inversely related to the strength of the US Dollar. Investors are cautious about the potential interest rate hike and its impact on the precious metal.

The European Monetary Union’s HCOB Composite Purchasing Managers’ Index (PMI) for September has exceeded expectations, reaching a level of 47.1 compared to the anticipated 46.5. This positive development comes amidst the economic challenges faced by the Eurozone.

In the United Kingdom, retail sales for the month of August fell below expectations. The month-on-month figures showed a decrease of 0.4%, falling short of the projected 0.5% growth. This disappointing performance in the retail sector raises concerns about the strength of the UK economy, as retail sales are a crucial indicator of consumer spending, a significant driver of economic growth.

The GBP/USD pair is currently facing challenges as it remains near a multi-month low of 1.2230. Despite a slight recovery from this level, the pair continues to fluctuate within a narrow range. Traders are closely monitoring the upcoming UK and US Purchasing Managers’ Index (PMI) data, which could further impact the pair’s performance.

The USD/JPY currency pair experienced a decline below 148.00, despite the strength of the US economy. The decline amounted to 0.60% losses, with the pair reaching near 147.50. The focus now shifts to the upcoming decision by the Bank of Japan (BoJ) regarding its monetary policy.

The Bank of Japan (BoJ) is set to hold its Monetary Policy Committee (MPC) meeting on Friday, September 22. While no changes to policy are expected, the focus will be on the tone of the meeting, which may turn hawkish. Forecasts from eight major banks suggest that the BoJ will maintain its current interest rate decision.

The USD Index (DXY) has surged to new multi-month highs, reaching the 105.70/75 level on Thursday. This upward momentum is expected to continue, posing a challenge to other currencies. The USD Index measures the value of the US dollar against a basket of major currencies. Its recent climb to multi-month tops suggests a strengthening of the dollar’s position in the global market.

In media news, Rupert Murdoch, the media mogul and founder of Fox and News Corporation, has announced his retirement from both company boards. This significant move leaves his son, Lachlan Murdoch, as the sole executive in charge of the global media empire. Rupert Murdoch’s retirement marks the end of an era in the media industry. With a career spanning several decades, he has played a pivotal role in shaping the landscape of global media. Under his leadership, Fox and News Corporation have become influential players in the industry.

This article was generated by AI so there may be some errors.