Marketwatch EU & UK

Daily Insights
May 9, 2024

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  • It’s Bank of England day and the sterling trades in a narrow range against the US Dollar as investors wait for any hints on the timing of the first rate cut. The BOE is widely expected to maintain its policy rate at 5.25% but the key focus today will be on Andrew Bailey’s words on inflation and growth and for any stronger signals on when the central bank plans to lower its borrowing costs.
  • GBP/USD is muted this morning ahead of today’s event, trading just below 1.25.

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  • Across the pond, Federal Reserve Bank of Boston President Susan Collins signalled that interest rates will need to be kept at current levels for longer than initially previewed to tame price pressures and demand.

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  • The Yen consolidated around155.70 against the greenback following hawkish comments from the Bank of Japan April policy meeting, where it suggested that board members are closely watching the Yen depreciation and the impacts it can have in the country’s inflation leading then to a fast-paced rate hike cycle.

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  • China’s exports advanced more than expected for the month of April in a boost for the economy. Exports grew 1.5% YoY, against a drop in March, while imports jumped to 8.4%.

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  • The Euro trades mid 1.07-1.08, consolidating around 1.0740. EUR/GBP is also on hold at the key resistance level of 0.8605 ahead of the BOE meeting today – the pair will struggle to trade any higher unless the BOE delivers a strong dovish message.

Economic Calendar

CNY - Trade Balance
CNY - USD-Denominated Trade Balance
JPY - Leading Indicators
CHF - Bank Holiday
EUR - French Bank Holiday
EUR - German Bank Holiday
CNY - M2 Money Supply y/y
CNY - New Loans
GBP - BOE Monetary Policy Report
GBP - Monetary Policy Summary
GBP - MPC Official Bank Rate Votes
GBP - Official Bank Rate
GBP - BOE Gov Bailey Speaks
USD - Unemployment Claims
CAD - BOC Financial System Review
USD - Mortgage Delinquencies
USD - Natural Gas Storage
CAD - BOC Gov Macklem Speaks
GBP - MPC Member Pill Speaks
USD - 30-y Bond Auction
USD - FOMC Member Daly Speaks
NZD - BusinessNZ Manufacturing Index
JPY - Household Spending y/y
JPY - Bank Lending y/y
JPY - Current Account

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86031 0.85994
gbp/usd 1.25017 1.24871
gbp/aud 1.90109 1.89765
gbp/nzd 2.084 2.07957
usd/jpy 155.744 155.148
eur/usd 1.07515 1.0742
gbp/jpy 194.482 193.827
eur/cnh 7.7707 7.7618
usd/cnh 7.23074 7.22415
Equities and Commodities
Nasdaq 100 18053.4
DOW 39012.4
S&P 500 5181.87
WTI 79.39
GOLD 2315.79

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.