Marketwatch EU & UK

Daily Insights
October 13, 2023

  • flag united states 1f1fa 1f1f8US inflation data released yesterday left the door open for another interest-rate hike this year, even as policymakers showed themselves to be cautious ahead of the next meeting. Core CPI, the best measure for underlying inflation, increased 0.3% MoM but in line with estimates. Headline CPI crept up to 0.4%, above expectations, due to an increase in energy costs.
  • The US dollar continues to reign, and it is set to post a 4-week gain as CPI data boosted yields higher on sentiment that the Fed may keep interest rates higher for longer.
  • flag european union 1f1ea 1f1faIn Europe, Swedish, French and Spain CPI are due along with Eurozone Industrial production, and the euro trades mid 1.05-1.06 against the US dollar.
  • EUR/USD continues to trade in a bearish trend, and we tried to break the upper part of the downward channel yesterday afternoon, but the market clearly showed its positioning after US CPI, and the euro was sold. We are currently trading lower at 1.0539.
  • flag united kingdom 1f1ec 1f1e7GBP/USD also dropped on US CPI news, dropping from 1.2320 to 1.2174. The market is in syntony, and it feels like it will look out for reasons to short the sterling.
  • flag china 1f1e8 1f1f3CPI in China is back to zero, indicating demand remains too weak to move prices. The gauge was unchanged at 0.1%, following August’s print while the estimates were 0.2%. USD/CNH trades at 7.3068 after advancing 0.1% last night, and USD/CNY muted at 7.3058.
  • oil drum 1f6e2 fe0fOil is set to finish the week with a modest gain as fears of the Israel-Hamas conflict disrupting the Middle East and compressing global oil supply build up.

Economic Calendar

CNY - CPI y/y
CNY - PPI y/y
CNY - Trade Balance
CNY - USD-Denominated Trade Balance
CHF - PPI m/m
EUR - German Buba President Nagel Speaks
EUR - French Final CPI m/m
GBP - BOE Gov Bailey Speaks
EUR - Industrial Production m/m
CNY - New Loans
CNY - M2 Money Supply y/y
USD - Import Prices m/m
EUR - ECB President Lagarde Speaks
USD - FOMC Member Harker Speaks
GBP - CB Leading Index m/m
USD - Prelim UoM Consumer Sentiment
USD - Prelim UoM Inflation Expectations
All - IMF Meetings
GBP - MPC Member Cunliffe Speaks
USD - Federal Budget Balance

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86483 0.8638
gbp/usd 1.22078 1.21825
gbp/aud 1.93229 1.92572
gbp/nzd 2.06348 2.05545
usd/jpy 149.827 149.572
eur/usd 1.05508 1.05315
gbp/jpy 182.826 182.419
eur/cnh 7.7081 7.6952
usd/cnh 7.3134 7.2979
Equities and Commodities
Nasdaq 100 15191.4
DOW 33651.7
S&P 500 4353.59
WTI 83.7
GOLD 1876.44

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.