US 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.
In 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.
GBP/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.
CPI 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 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.
Marketwatch EU & UK
Daily insights into the latest global market news
Daily Insights
October 13, 2023
Economic Calendar
13 Oct 2023
1:30am:
CNY - CPI y/y
1:30am:
CNY - PPI y/y
3:03am:
CNY - Trade Balance
3:04am:
CNY - USD-Denominated Trade Balance
6:30am:
CHF - PPI m/m
6:45am:
EUR - German Buba President Nagel Speaks
6:45am:
EUR - French Final CPI m/m
8:00am:
GBP - BOE Gov Bailey Speaks
9:00am:
EUR - Industrial Production m/m
9:18am:
CNY - New Loans
9:18am:
CNY - M2 Money Supply y/y
12:30pm:
USD - Import Prices m/m
1:00pm:
EUR - ECB President Lagarde Speaks
1:00pm:
USD - FOMC Member Harker Speaks
1:30pm:
GBP - CB Leading Index m/m
2:00pm:
USD - Prelim UoM Consumer Sentiment
2:00pm:
USD - Prelim UoM Inflation Expectations
2:15pm:
All - IMF Meetings
4:30pm:
GBP - MPC Member Cunliffe Speaks
6:05pm:
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 |
| BRENT CRUDE | 86.81 |
| 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.
