Marketwatch EU & UK

Daily Insights
May 21, 2024

  • The US Dollar gains against major peers as investors take profits from last week’s greenback shorts in a week that has little to offer in the terms of key economic data. Investors are now focusing on the US’ interest rate differential relative to the rest of the world.
  • Federal Reserve’s Loretta Mester stated that policy is restrictive, but policymakers need to wait for more evidence on the path of inflation to safely adjust interest rates. Mester favoured three rate cuts this year and now thinks three reductions would still be appropriate in 2024.
  • The US Dollar Index trades at 104.60, up 0.04% on the day and US Treasury 10-year yields are steady at 4.45% as risk-off sentiment builds up.
  • AUD/USD declines for a second consecutive day trading at 0.6658 after RBA policy makers have put tightening on the table again on the May meeting minutes, while NZD/USD hovers the 0.61 level.
  • EUR/USD is steady at 1.0860, consolidating last week’s gains while GBP/USD holds above 1.27.
  • EUR/GBP is biased lower into the UK’s inflation print tomorrow as traders lean into option strikes set below the current spot rate.

Economic Calendar

:
AUD - Westpac Consumer Sentiment
:
AUD - Monetary Policy Meeting Minutes
:
NZD - Credit Card Spending y/y
:
EUR - German PPI m/m
:
CNY - Foreign Direct Investment ytd/y
:
EUR - ECB President Lagarde Speaks
:
EUR - Current Account
:
USD - Treasury Sec Yellen Speaks
:
EUR - Trade Balance
:
GBP - CBI Industrial Order Expectations
:
CAD - CPI m/m
:
CAD - Median CPI y/y
:
CAD - Trimmed CPI y/y
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CAD - Common CPI y/y
:
CAD - Core CPI m/m
:
USD - FOMC Member Waller Speaks
:
USD - FOMC Member Barkin Speaks
:
USD - FOMC Member Williams Speaks
:
USD - FOMC Member Bostic Speaks
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NZD - GDT Price Index
:
USD - FOMC Member Barr Speaks
:
GBP - BOE Gov Bailey Speaks
:
USD - FOMC Member Mester Speaks
:
JPY - Core Machinery Orders m/m
:
JPY - Trade Balance

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.85466 0.85419
gbp/usd 1.27135 1.26968
gbp/aud 1.91061 1.9039
gbp/nzd 2.08538 2.07984
usd/jpy 156.546 156.09
eur/usd 1.08618 1.08508
gbp/jpy 198.907 198.423
eur/cnh 7.87206 7.8574
usd/cnh 7.24941 7.2404
Equities and Commodities
Nasdaq 100 18679.7
DOW 39832.9
S&P 500 5315.14
BRENT CRUDE 83.17
WTI 78.84
GOLD 2416.21

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.