Marketwatch EU & UK

Daily Insights
April 4, 2024

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  • The US Dollar extends its decline this morning, with the DXY currently approaching the 104-handle following a weak ISM Services report and Fed Chair Jerome Powell words regarding the path for rate cuts and the state of the economy.
  • Chair Jerome Powell reiterated the “wait and see” mantra before the central bank decides to cut interest rates. Powell stated that recent inflation prints – that came out higher than expected – did not “materially change” the overall picture. He also added his expectations that it will likely be appropriate to cut interest rates at “some point this year”.
  • Equities found comfort in his words and the S&P 500 touched 5,200. Gold extended gains to trade at an all-time high, and commodity currencies outperformed.
  • The softening of the greenback can continue if incoming data – tomorrow’s Non- Farm Payrolls- leads to a recovery in bets for a June cut.

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  • The euro-area economy posted another headline inflation print that was lower than expected and on a consistent path to the 2% target, but the services price gains should keep policymakers on alert before the cutting cycle begins. Headline inflation dropped to 2.4%, vs. 2.6% in February while Core inflation dropped to 2.9% in March, vs. 3.1% in February.
  • The euro continues to grind higher against the US Dollar crossing the 1.08 level yesterday and currently trading near 1.0850.

Economic Calendar

NZD - ANZ Commodity Prices m/m
CNY - Bank Holiday
AUD - Building Approvals m/m
JPY - 30-y Bond Auction
CHF - CPI m/m
EUR - Spanish Services PMI
EUR - Italian Services PMI
EUR - French Final Services PMI
EUR - German Final Services PMI
EUR - Final Services PMI
GBP - Final Services PMI
EUR - PPI m/m
EUR - Spanish 10-y Bond Auction
EUR - French 10-y Bond Auction
GBP - 10-y Bond Auction
EUR - ECB Monetary Policy Meeting Accounts
USD - Challenger Job Cuts y/y
CAD - Trade Balance
USD - Unemployment Claims
USD - Trade Balance
USD - Natural Gas Storage
USD - FOMC Member Barkin Speaks
USD - FOMC Member Mester Speaks
JPY - Household Spending y/y
USD - FOMC Member Kugler Speaks

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.85723 0.85657
gbp/usd 1.26598 1.26443
gbp/aud 1.92666 1.92
gbp/nzd 2.10386 2.09636
usd/jpy 151.724 151.538
eur/usd 1.08464 1.08345
gbp/jpy 192.019 191.72
eur/cnh 7.86258 7.8515
usd/cnh 7.25117 7.24462
Equities and Commodities
Nasdaq 100 18246.9
DOW 39225.9
S&P 500 5231.45
WTI 85.61
GOLD 2296.47

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


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.