Marketwatch EU & UK

Daily Insights
June 20, 2024

  • It’s BOE day and Andrew Bailey and his colleagues are expected to keep rates unchanged at a 16-year high of 5.25%. Wednesday’s services inflation data came in higher than expected, only suggesting that it is wise to wait a few more weeks and evaluate further inflation prints before cutting interest rates.
  • Officials have remained silent regarding the 4th of July general election, giving little insight to investors on how to read the latest polls and data but this meeting should be key for any signs of when officials may act and the BOE forecast due in August.
  • The sterling continues to trade close to the 1.27 handle against the greenback ahead of today’s meeting and it is well under pressure to trade lower if the BoE turns out to be more than dovish than expected.

 

 

  • The US Dollar is steady as traders continue to wait for fresh clues on the Fed’s monetary policy outlook. There’s little in the spectrum of data today from the US as most of the attention will be on the Bank of England but, US housing starts, and initial jobless claims are due this afternoon.
  • The US economy is starting to lose steam and if European political risks don’t spike further fear across investors, we could see the greenback remain on the back foot.

Economic Calendar

:
CNY - 1-y Loan Prime Rate
:
CNY - 5-y Loan Prime Rate
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CHF - SNB Financial Stability Report
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CHF - Trade Balance
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EUR - German PPI m/m
:
CNY - Foreign Direct Investment ytd/y
:
CHF - SNB Monetary Policy Assessment
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CHF - SNB Policy Rate
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CHF - SNB Press Conference
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EUR - ECB Economic Bulletin
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EUR - Spanish 10-y Bond Auction
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GBP - Monetary Policy Summary
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GBP - MPC Official Bank Rate Votes
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GBP - Official Bank Rate
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GBP - BOE Inflation Letter
:
CAD - NHPI m/m
:
USD - Unemployment Claims
:
USD - Building Permits
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USD - Philly Fed Manufacturing Index
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USD - Current Account
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USD - Housing Starts
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EUR - Consumer Confidence
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USD - Crude Oil Inventories
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USD - FOMC Member Barkin Speaks
:
USD - Treasury Currency Report
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AUD - Flash Manufacturing PMI
:
AUD - Flash Services PMI
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GBP - GfK Consumer Confidence
:
JPY - National Core CPI y/y

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.84525 0.8447
gbp/usd 1.27201 1.27054
gbp/aud 1.90738 1.90451
gbp/nzd 2.0751 2.07185
usd/jpy 158.19 157.952
eur/usd 1.07481 1.07336
gbp/jpy 201.111 200.886
eur/cnh 7.82921 7.8148
usd/cnh 7.28774 7.27597
Equities and Commodities
Nasdaq 100 20037.6
DOW 38823.9
S&P 500 5506.28
BRENT CRUDE 85.02
WTI 80.54
GOLD 2342.87

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.