Marketwatch EU & UK

Daily Insights
February 23, 2024

  • flag united states 1f1fa 1f1f8Global risk appetite continues to be influenced by equity markets following the Nvidia bumper earnings report which pushed stock indices across three continents to all time highs. The US S&P index, Japan’s Nikkei and UK FTSE all hit record highs after the latest jump in Nvidia shares added a record setting USD 277 billion to the companies’ market cap. The US dollar however was little changed with the greenback consolidating as traders continue to assess remarks from Fed officials regarding the timing of potential rate cuts from the central bank. Wary Fed speak continued with Christopher Waller saying January’s jump in consumer prices warrants caution in deciding when to start cutting rates, although he still expects reductions to start this year. In a speech yesterday when talking about inflation and the economy he used words such as careful, patient deliberate and methodical – adding, “Whatever word you pick, they all translate to one idea – what’s the rush?” Just a few short weeks ago, swap markets were pricing in up to 7 cuts from the Fed commencing at the March policy meeting. However, after solid jobs reports and above consensus price gains, markets have significantly dialled back on early cuts, with the first moved now priced in for June or maybe even July.
  • flag european union 1f1ea 1f1faEURUSD remains in consolidation mode, holding steady above 1.08 as markets await this morning’s German Ifo survey, which is typically one of the more reliable measures of growth in the euro areas largest economy. The business expectations balance will be closely scrutinised, after a larger than expected rise in the ZEW expectations survey.
  • flag united kingdom 1f1ec 1f1e7Data released yesterday showed that the composite PMI index for the UK increased to 53.0 from 52.9 the previous month. The data helped GBPUSD to temporarily breach 1.27 yesterday, however we are back on a 1.26 handle this morning trading within the recent range.

Economic Calendar

JPY - Bank Holiday
GBP - GfK Consumer Confidence
USD - FOMC Member Waller Speaks
CNY - New Home Prices m/m
EUR - German Final GDP q/q
CNY - Foreign Direct Investment ytd/y
GBP - MPC Member Greene Speaks
CHF - Gov Board Member Schlegel Speaks
EUR - German ifo Business Climate
EUR - German Buba President Nagel Speaks
EUR - Eurogroup Meetings
EUR - ECOFIN Meetings
CAD - Corporate Profits q/q
EUR - Belgian NBB Business Climate
USD - Fed Monetary Policy Report

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.85517 0.85463
gbp/usd 1.26678 1.26479
gbp/aud 1.93118 1.92603
gbp/nzd 2.04456 2.04043
usd/jpy 150.651 150.369
eur/usd 1.08319 1.08147
gbp/jpy 190.754 190.401
eur/cnh 7.80534 7.78827
usd/cnh 7.2092 7.19776
Equities and Commodities
Nasdaq 100 18002.7
DOW 39107.6
S&P 500 5091.53
WTI 78.14
GOLD 2021.49

This document is for information purposes only and does not constitute any recommendation or solicitation to any person to enter into any transaction or adopt any trading strategy, nor does it constitute any prediction of likely future movements in exchange rates or prices or any representation that any such future movements will not exceed those shown on any illustration. All exchange rates and figures appearing are for illustrative purposes only. You are advised to make your own independent judgment with respect to any matter contained herein.

About Simon Walker


Simon Walker is head of the GPS Capital Markets trade desk in our London office where he is responsible for covering market risk in European hours. He has over 25 years’ experience in foreign exchange, working in both sales and trading.