Author: finadmin

War-driven price effects and inflation – UBS

War-driven price effects and inflation – UBS

UBS economist Paul Donovan discusses how the Gulf war has lifted Oil prices and pushed consumer price inflation above target in major economies. He notes that Energy has a relatively small direct weight in US and EU consumer baskets, but its indirect impact via transport and production is significant. Donovan highlights the complexity of isolating […]

RBI support offsets wider trade gap – Societe Generale

RBI support offsets wider trade gap – Societe Generale

Societe Generale notes India’s headline CPI rose slightly to 4.45% year-on-year in July, backing the RBI’s decision to keep policy unchanged. The central bank has reportedly been active in FX markets as the trade deficit widened. Higher Oil and Gold prices countered dovish Federal Reserve repricing, while non-resident inflows into Indian Government Bonds have helped […]

Why is the British Pound rising amid the Middle East tensions?

Why is the British Pound rising amid the Middle East tensions?

The GBP/USD pair gathers strength to near 1.3495 during the early European trading hours on Friday. The British Pound (GBP) edges higher against the US Dollar (USD) as cooler-than-expected US consumer and producer price data have limited the Federal Reserve’s (Fed) room for further interest rate hikes. Traders will keep an eye on the US […]