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Home > Market Watch > EU & UK News > Mon April 22, 2024

Daily Insights
April 22, 2024

  • The US Dollar starts the week lower against major peers as investors ran away from safe havens on the lack of escalations between Israel and Iran. Last week’s strong retail sales print showed that consumers continue to represent a great driver of growth for the US economy.
  • Federal Reserve Chair Jerome Powell and other policymakers signalled again that they will be patient about interest rate cuts this year given all the hot inflation prints received so far, highlighting concerns that disinflation has stalled. Traders immediately dialled back on their rate cut expectations, slashing cut bets to around 38bps for this year, from 47 bps.
  • Key data/events to watch this week in the US: Q1 GDP (Thur.); PCE and Core PCE Deflator (Fri.); U. Michigan Sentiment (Fri.)

 

  • The euro trades at 1.0656 against the greenback, gaining +0.05% on the day. The EUR/GBP ended last week with a jump to 0.8615, breaking the 0.85-0.86 range we have been since January.
  • This move was triggered when many traders had already signed off for the weekend as BOE Deputy Governor Dave Ramsden filled the market with a dovish tone, but sterling traders continue to hold the view that the BOE will hold rates longer than the ECB which ultimately will bring the pair lower, again.
  • GBP/USD currently holds below 1.24, trading at 1.2382. Next key support seen around 1.2310.
  • Key data/events to watch this week in the Euro-area/UK:
    • UK: UK Flash Composite PMI (Tue.)
    • Euro-area: Euro-area Flash Composite PMI (Tue.); Germany Ifo Survey (Wed.)

Economic Calendar

22 Apr 2024
:
CNY - 1-y Loan Prime Rate
:
CNY - 5-y Loan Prime Rate
:
NZD - Credit Card Spending y/y
:
GBP - CBI Industrial Order Expectations
:
CAD - IPPI m/m
:
CAD - NHPI m/m
:
CAD - RMPI m/m
:
EUR - Consumer Confidence
:
EUR - ECB President Lagarde Speaks
:
AUD - Flash Manufacturing PMI
:
AUD - Flash Services PMI

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86155 0.85829
gbp/usd 1.23923 1.23604
gbp/aud 1.92911 1.91964
gbp/nzd 2.10077 2.08989
usd/jpy 154.762 154.393
eur/usd 1.06706 1.06389
gbp/jpy 191.696 190.95
eur/cnh 7.73785 7.7202
usd/cnh 7.25542 7.246
Equities and Commodities
Nasdaq 100 17167.3
DOW 38141.6
S&P 500 4995.35
BRENT CRUDE 86.29
WTI 81.3
GOLD 2365.07

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 Francisco Mioludo

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Francisco Mioludo is a trader for GPS Capital Markets at the London office. Before joining GPS, Francisco worked in Market Risk at a commodity trading firm in London where he gained valuable skills for his current role. Francisco looks after our EU and UK sales team with everything from analysis to structuring and pricing.

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