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On October 18, Ukrainian President Volodymyr Zelenskyy posted on social media that Russian forces attacked substations in Vinnytsia, Zhytomyr, Khmelnytskyi, and Odessa regions on the evening of October 17, causing power outages for tens of thousands of households. In addition, the Russian airstrikes that evening resulted in two deaths and 12 injuries. Zelenskyy stated that in the week since US President Trump declared an "energy ceasefire" between Russia and Ukraine, Russia has launched 76 attacks on Ukrainian power, oil, and gas facilities. Over the past week, the Russian military has launched 2,700 attack drones, more than 1,700 aerial bombs, and 66 missiles into Ukraine, primarily targeting Ukrainian energy facilities. He called on the US to put pressure on Russia. According to official Ukrainian statements and energy company announcements on social media on the morning of October 18, from the evening of October 17 to the early morning of October 18, Russian forces launched airstrikes on energy facilities in multiple Ukrainian regions, causing emergency power outages in Kyiv, Kyiv Oblast, Odessa Oblast, Ternopil Oblast, and other areas.The Saudi Civil Defense Authority has lifted the emergency alert for Najran.The Saudi Civil Defense Authority issued an emergency alert in Najran.EU foreign policy spokesperson: We are positively concerned about the statements from several Israeli representatives condemning the attacks, but we look forward to full accountability.EU foreign policy spokesperson: The EU strongly condemns the latest violent attacks by settlers on the West Bank, including attacks against European diplomats.

The GBP/USD has retested a multi-month low below 1.1700, despite hawkish signals from the options market

Daniel Rogers

Aug 29, 2022 14:42

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Despite bullish signs from the options market, Friday's continuation of the GBP/USD decline to a new low since March 2020 has GBP/USD leaning bearish near 1.1680.

 

Nonetheless, the GBP/USD one-month risk reversal (RR), which is the difference between call options and put options, recorded a four-day gain at Friday's end, peaking at 0.025. The RR value flips from negative -0.480 last week to positive 0.295 this week.

 

The recent aggressive language from the Fed and economic worries regarding the UK, especially in the context of political uncertainty, should have served as clues for the negative inclination.

 

Fed Chairman Jerome Powell said in his much-anticipated Jackson Hole speech on Friday that restoring price stability will take some time and involve "forceful" use of the central bank's tools. The policymaker also said that maintaining a restrictive approach for "some time" will be necessary to restore price stability.

 

Goldman Sachs expects a recession for the United Kingdom in Q4 2022, and lowers its GDP forecast for the year from 3.7% to 3.5% on a separate page. The US bank concludes in its latest report that the recession will be "very modest."