Marketwatch EU & UK

Daily Insights
May 8, 2024

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  • The US Dollar continues to gain for a third consecutive day as Treasury yields edge higher. Neel Kashkari, Fed’s Bank of Minneapolis President, mentioned in an essay published last night that the central bank is due to keep interest rates where they are “for an extended period of time” until policymakers feel confident that inflation is heading towards the 2% target. More speakers are due later today such as Jefferson and Cook.
  • Last week’s US payrolls helped unwind some fears on the high interest rates currently in place, but it is important to note that the path for an easing in policy and for the first cut continues to be uncertain for the next few months.
  • The DXY trades at 105.50, +0.09% on the day and +4.12% YTD.

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  • The euro continues to edge lower in the face of a stronger greenback and trades mid 1.07-1.08 while GBP/USD drops below 1.25 ahead of tomorrow’s BOE meeting where they are widely expected to leave rates unchanged at 5.25% for a sixth straight consecutive meeting.

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  • The Yen continues to depreciate against the US Dollar, ignoring last week’s suspected Tokyo interventions and warnings from the Bank of Japan Governor Kazuo Ueda about a potential move in policy to fight against a weaking yen.

Economic Calendar

JPY - 10-y Bond Auction
EUR - German Industrial Production m/m
EUR - French Bank Holiday
EUR - Italian Retail Sales m/m
GBP - 30-y Bond Auction
USD - Final Wholesale Inventories m/m
USD - Crude Oil Inventories
USD - FOMC Member Jefferson Speaks
USD - 10-y Bond Auction
USD - FOMC Member Cook Speaks
GBP - RICS House Price Balance
JPY - Average Cash Earnings y/y
JPY - BOJ Summary of Opinions

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86044 0.85978
gbp/usd 1.2503 1.24837
gbp/aud 1.90072 1.89585
gbp/nzd 2.08692 2.08257
usd/jpy 155.265 154.686
eur/usd 1.07541 1.07379
gbp/jpy 193.874 193.355
eur/cnh 7.77015 7.7596
usd/cnh 7.23222 7.22265
Equities and Commodities
Nasdaq 100 18102.2
DOW 38893.6
S&P 500 5190.59
WTI 77.94
GOLD 2317.91

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.