Marketwatch EU & UK

Daily insights into the latest global market news
Subscribe
Home > Market Watch > EU & UK News > Thu May 23, 2024

Daily Insights
May 23, 2024

flag united states 1f1fa 1f1f8

  • Minutes from the two-day FOMC meeting earlier this month showed that the officials support interest rates to be “higher for longer” and are worried if policy is restrictive enough to bring inflation down to their target.
  • Following disappoint readings on inflation over the first quarter, committee members acknowledged “that it would take longer than previously anticipated for them to gain greater confidence that inflation was moving sustainably toward 2%”.
  • The US Dollar edges lower this morning after rising for three consecutive days with the DXY trading at 104.86.

flag united kingdom 1f1ec 1f1e7

  • In the UK, April CPI print has likely put bets for a June cut on the shelf and markets now point at a 50% chance of a cut at the August meeting according to Overnight Index Swaps.
  • Inflation is likely to drop further to the 2% goal until the end of the year instead of reaccelerating as the BOE expects. This could be a reason for rates to be cut faster than the markets currently anticipate.
  • UK Prime Minister Rishi Sunak has called for an early than expected election this summer, which is due to take place on the 4th of July. Inflation data failed Sunak and stagnant living standards are likely to deny him another mandate. Issues like inflation and weak productivity growth remain the biggest challenge for the UK economy which the next successor will have to face.
  • GBP/USD holds above 1.27, trading at 1.2726 while EUR/USD continues to hold above 1.08 at 1.0828.

Economic Calendar

23 May 2024
:
JPY - Flash Manufacturing PMI
:
AUD - MI Inflation Expectations
:
EUR - French Flash Manufacturing PMI
:
EUR - French Flash Services PMI
:
EUR - German Flash Manufacturing PMI
:
EUR - German Flash Services PMI
:
EUR - Flash Manufacturing PMI
:
EUR - Flash Services PMI
:
GBP - Flash Manufacturing PMI
:
GBP - Flash Services PMI
:
All - G7 Meetings
:
CNY - Foreign Direct Investment ytd/y
:
GBP - MPC Member Pill Speaks
:
CAD - NHPI m/m
:
USD - Unemployment Claims
:
CNY - CB Leading Index m/m
:
USD - Flash Manufacturing PMI
:
USD - Flash Services PMI
:
EUR - Consumer Confidence
:
USD - New Home Sales
:
USD - Natural Gas Storage
:
USD - FOMC Member Bostic Speaks
:
NZD - Trade Balance
:
GBP - GfK Consumer Confidence
:
JPY - National Core CPI y/y

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.85117 0.85044
gbp/usd 1.27317 1.27167
gbp/aud 1.92298 1.91908
gbp/nzd 2.08548 2.07904
usd/jpy 156.906 156.575
eur/usd 1.08324 1.08213
gbp/jpy 199.587 199.264
eur/cnh 7.85819 7.8478
usd/cnh 7.25801 7.24837
Equities and Commodities
Nasdaq 100 18881.1
DOW 39716.2
S&P 500 5340.71
BRENT CRUDE 81.37
WTI 76.94
GOLD 2362.55

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

author-headshot

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.

Other Market News

North America News
APAC News