Marketwatch EU & UK

Daily Insights
June 6, 2024

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  • It is ECB day, and the Euro continues to hold near the 1.09 level against greenback. The European Central Bank is set to start cutting interest rates, confident that inflation is sufficiently controlled to ease the burden of tight levels of credit on the economy.
  • The current deposit rate sits at 4%, where it sat for the last nine months, and many economists estimate that today’s cut will be of 25 basis point, ultimately bringing the rate down to 3.75%.
  • Views from where the Central Bank will go from here are still unclear, specially in the wake of stronger-than-expected data across the regions regarding economic growth, inflation and wages.
  • Many economists still expect three cuts this year, but investors have dialled back on their expectation and have only fully priced two rate cuts until the end of the year.

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  • The US service sectors grew in May by the most in nine months, driven by the largest monthly gain in business activity since 2021. ISM purchasing managers index advanced by 4 points in May to 53.8, surpassing the 50 level where it indicates expansion.
  • The greenback is lower against most of its peers this morning as yesterday’s 25bps rate cut in Canada shifted focus to the Federal Reserve interest rate path ahead of this Friday’s payroll data.

Economic Calendar

NZD - ANZ Commodity Prices m/m
AUD - Goods Trade Balance
AUD - ANZ Job Advertisements m/m
JPY - 30-y Bond Auction
CHF - Unemployment Rate
EUR - German Factory Orders m/m
EUR - Italian Retail Sales m/m
GBP - Construction PMI
EUR - Retail Sales m/m
EUR - French 10-y Bond Auction
EUR - European Parliamentary Elections
USD - Challenger Job Cuts y/y
EUR - Main Refinancing Rate
EUR - Monetary Policy Statement
CAD - Trade Balance
USD - Unemployment Claims
USD - Revised Nonfarm Productivity q/q
USD - Revised Unit Labor Costs q/q
USD - Trade Balance
EUR - ECB Press Conference
CAD - Ivey PMI
USD - Natural Gas Storage
NZD - Manufacturing Sales q/q
JPY - Household Spending y/y

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.85094 0.84988
gbp/usd 1.28089 1.2789
gbp/aud 1.92222 1.91632
gbp/nzd 2.06633 2.06075
usd/jpy 155.959 155.348
eur/usd 1.08957 1.08738
gbp/jpy 199.541 198.966
eur/cnh 7.9053 7.8868
usd/cnh 7.25857 7.2516
Equities and Commodities
Nasdaq 100 19043.5
DOW 38779.9
S&P 500 5355.72
WTI 74.49
GOLD 2366.85

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.