Marketwatch EU & UK

Daily Insights
June 18, 2024

 

  • The US Dollar is little changed this morning after the S&P 500 hit another record rally, driving European equity futures and Asian stocks higher. Federal Reserve Bank of Philadelphia Patrick Harker stated that one rate cut for this year seems appropriate, adding that he would like to see inflation improve for some more time. Harker added that the May CPI report “was very welcome” but that policymakers need further evidence that inflation is on track to the 2% goal to comfortably cut interest rates.

 

  • The Aussie Dollar holds above 0.66 against the US Dollar after the Reserve Bank of Australia kept interest rates unchanged as economists previously estimated. The possibility of a rate hike this year was kept on the table, as policymakers showed concern around persistent high inflation.

 

  • The Yen trades lower against the greenback after gaining overnight as BOJ’s Governor Kazuo Ueda reiterated that an interest rate hike in July is a possibility even with the central bank planning to cut bond buying at the same time.

 

  • The euro holds above 1.07 ahead of this morning’s ZEW Survey expectation for Germany and the euro-area as well as the Eurozone final May CPI but a move above 1.0750 certainly seems unlikely as the real moving data should come later in the week from the US. France’s political instability is growing concern across the European Union capitals, especially on common military spending to support Ukraine, which could see a fall after the elections.

 

  • GBP/USD hovers near the 1.27 level as investors attention shift to Wednesday CPI print, where it is expected to drop to 2% and bring some risk towards Thursday’s Bank of England meeting. UK May Services CPI should register a sharp decline and lead the BoE policy statement to hint an August rate cut.

Economic Calendar

:
USD - FOMC Member Cook Speaks
:
AUD - Cash Rate
:
AUD - RBA Rate Statement
:
AUD - RBA Press Conference
:
CNY - Foreign Direct Investment ytd/y
:
All - G7 Meetings
:
EUR - Final Core CPI y/y
:
EUR - Final CPI y/y
:
EUR - ZEW Economic Sentiment
:
EUR - German ZEW Economic Sentiment
:
USD - Core Retail Sales m/m
:
USD - Retail Sales m/m
:
USD - Industrial Production m/m
:
USD - Capacity Utilization Rate
:
USD - Business Inventories m/m
:
USD - FOMC Member Barkin Speaks
:
AUD - CB Leading Index m/m
:
NZD - GDT Price Index
:
USD - FOMC Member Kugler Speaks
:
USD - TIC Long-Term Purchases
:
NZD - Current Account
:
JPY - Monetary Policy Meeting Minutes
:
JPY - Trade Balance

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.84497 0.84438
gbp/usd 1.27151 1.26915
gbp/aud 1.92332 1.91542
gbp/nzd 2.07635 2.07027
usd/jpy 157.868 157.514
eur/usd 1.07406 1.07181
gbp/jpy 200.486 200.027
eur/cnh 7.80839 7.7912
usd/cnh 7.27371 7.26725
Equities and Commodities
Nasdaq 100 19909.1
DOW 38816.9
S&P 500 5477.35
BRENT CRUDE 84.11
WTI 80.27
GOLD 2320.73

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.