Harmful, Toxic, Biased and Insecure
Well it took less than one week: after the excitement that met the DeepSeek AI application, came the fight back, the negative press and the correct questioning as to whether DeepSeek is safe. Well surprise surprise, it does not tolerate or even answer questions prejudicial to China but there are it turns out questions about whether it is sufficiently secure or whether it furthers terrorism for example. If like me you downloaded it last week, it seems to offer a fabulous responsive service, but there is a part of me that asks if it is not also harvesting data from other Apps on my device.
USD/JPY 155.19.
Great British Pound
After a torrid start to the year, GBP has settled down and recovered some of its lost ground. However coming up this week is the Bank of England meeting on Thursday. The expectation is for the BoE to cut by 25bps i.e. the same as the ECB rather than pause as the Federal reserve did last week. Given that UK Chancellor Reeves has filled the airwaves with her calls for “growth” rather than concrete ways that she will achieve it plus the somewhat cozy relationship she shares with Governor Bailey who only a few short months ago was in the firing line from the markets for having mismanaged the post Covid stimulus inflationary era, expect the Monetary Policy Committee to vote for that cut.
GBP/USD 1.2395.