Marketwatch EU & UK

Daily Insights
May 29, 2024

  • After several days of losses, the US dollar bounced back yesterday edging a touch higher after an improved Consumer Confident report and hawkish Fed comments backed up recent sentiment that the US central bank is in no rush to cut interest rates. May’s Consumer Confidence jumped to 102.0 from 97.5 despite many analysts predicting a small drop. Non-voting Minneapolis Fed President Neel Kashkari yesterday said that growth remains robust, and whilst interest rate hikes are not off the table, the odds of further tightening remain quite low. He again urged caution, saying, “is the disinflationary process continuing or are we landing to more of a 3% inflation level. I think it’s still too early to know and we need to wait and see to get more confidence.”
  • US Treasury yields were mixed as the greenback gained a touch pushing the single currency off its recent high. EURUSD looked set to finally breach its stubborn resistance at 1.09 with the pair getting within touching distance before falling after the Consumer Confidence data came out. EURUSD slipped to support at 1.0850 where it consolidates ahead of German inflation data due this morning.
  • The pound is consolidating, with the lack of UK data this week keeping GBPUSD capped at 1.28 which was briefly tested yesterday. Cable remains one of the best supported G10 pairs and has enjoyed a decent run over the past few months, trading towards the top of its recent range as the timing of the first BoE cut continues to be pushed further out.
  • We have the release of the Fed Beige book overnight and month end flows are expected to kick in which are expected to see the greenback being sold.

Economic Calendar

AUD - MI Leading Index m/m
NZD - ANZ Business Confidence
AUD - CPI y/y
AUD - Construction Work Done q/q
JPY - Consumer Confidence
EUR - German GfK Consumer Climate
EUR - German Prelim CPI m/m
CHF - UBS Economic Expectations
EUR - M3 Money Supply y/y
EUR - Private Loans y/y
USD - Richmond Manufacturing Index
USD - FOMC Member Williams Speaks
USD - Beige Book
NZD - Building Consents m/m
AUD - RBA Assist Gov Hunter Speaks
USD - FOMC Member Bostic Speaks

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.85093 0.85046
gbp/usd 1.27596 1.27462
gbp/aud 1.92096 1.91371
gbp/nzd 2.08026 2.07502
usd/jpy 157.406 157.202
eur/usd 1.08569 1.08438
gbp/jpy 200.745 200.479
eur/cnh 7.8868 7.8748
usd/cnh 7.26665 7.2613
Equities and Commodities
Nasdaq 100 18843
DOW 38753.9
S&P 500 5296.53
WTI 80.11
GOLD 2357.87

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.