Marketwatch EU & UK

Daily Insights
February 20, 2024

  • It has been a quiet start to the week, with the US out yesterday for the Presidents Day holiday and a quiet data calendar ahead of us. The US dollar has started the week mixed against its G10 peers, with the dollar index initially dropping a touch before paring losses with EURUSD hovering within its tight recent trading range. Solid support is seen at 1.0720 and resistance comes in at 1.0830, with the pair treading water with upcoming PMI’s and the minutes of the last ECB meeting on investors minds.
  • The pound has slipped against the greenback after rallying a touch yesterday with the pair running into offers around 1.2630, pushing cable below the psychological 1.26 area where it attempts to consolidate. EURGBP has moved higher, breaching the 0.8550 level which has proved stubborn resistance as markets await a speech from BoE Governor Andrew Bailley later today in an otherwise quiet session for data releases.
  • China further boosted its support for its troubled property sector producing its biggest ever cut to a key mortgage rate, slashing their five-year loan prime rate by 25 basis points, raising speculation of more aggressive measures to support the economy. The ongoing property crisis in China has been a huge drag on the world’s second largest economy with the move aimed to entice homebuyers as property sales continue to slump.
  • The Reserve Bank of Australia kept interest rates on hold at its first policy meeting of the year, but considered raising rates, agreeing that the case to pause was the “stronger one”. Cooling inflation and weaker than expected jobs and consumer spending prints prompted the RBA to keep rates unchanged at a 12 year high, with minutes suggesting that further monetary tightening remains a possibility in their ongoing quest to return inflation to target.

Economic Calendar

AUD - Monetary Policy Meeting Minutes
CNY - 1-y Loan Prime Rate
CNY - 5-y Loan Prime Rate
CHF - Trade Balance
CNY - Foreign Direct Investment ytd/y
EUR - Current Account
CAD - CPI m/m
CAD - Median CPI y/y
CAD - Trimmed CPI y/y
CAD - Common CPI y/y
CAD - Core CPI m/m
GBP - Monetary Policy Report Hearings
NZD - GDT Price Index
USD - CB Leading Index m/m
NZD - PPI Input q/q
NZD - PPI Output q/q
AUD - MI Leading Index m/m
JPY - Trade Balance

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.85604 0.85526
gbp/usd 1.25929 1.25791
gbp/aud 1.92925 1.92595
gbp/nzd 2.05261 2.04857
usd/jpy 150.438 150.192
eur/usd 1.07767 1.07616
gbp/jpy 189.275 189.077
eur/cnh 7.77309 7.7545
usd/cnh 7.21833 7.20466
Equities and Commodities
Nasdaq 100 17647.1
DOW 38532.5
S&P 500 4996.05
WTI 78.43
GOLD 2019.39

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 Simon Walker


Simon Walker is head of the GPS Capital Markets trade desk in our London office where he is responsible for covering market risk in European hours. He has over 25 years’ experience in foreign exchange, working in both sales and trading.