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Home > Market Watch > EU & UK News > Mon December 18, 2023

Daily Insights
December 18, 2023

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  • Two Federal Reserve officials pushed back on market expectations of a Fed pivot towards monetary easing as soon as March next year. NY Fed President John Williams stated that it is too early to speak about cuts as they question if policy is sufficiently restrictive to bring inflation back to the Fed’s 2% goal. Raphael Bostic, Atlanta Fed President, also backed Williams words, stating it is “premature” to think about rate cuts before March, and that he only expects rate cuts but not until the third quarter.
  • The US dollar recovered on Friday, and it now starts the week lower against major peers ahead of this week’s data.  Th   Dollar Index is muted at 102.44.
  • Key data/events to watch this week in the US:  Housing starts (Tue.); Existing Home sales (Wed.); Initial Jobless claims (Thu.); 3Q GDP (Thu.); PCE and Core PCE Deflator (Fri.).

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  • In the euro-area, the euro gains and consolidates above 1.09. ECB members has also stated it is too early to talk about rate cuts and that markets are rushing themselves with betting on policy easing for the first two quarters of next year.  ECB’s Christine Lagarde added that the central bank did not discuss lowering borrowing costs at last week’s meeting.
  • Key data/events to watch this week in the Euro-area:  Germany IFO Survey (Mon.); Euro-area final CPI (YoY).

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  • In the UK, cable heads towards 1.27 as all attention shifts to UK inflation, where it is expected to have eased further in November.
  • Key data/events to watch this week in the UK:  UK CPI inflation YoY (Wed.); UK Retail sales MoM (Fri.).

Economic Calendar

18 Dec 2023
:
EUR - German ifo Business Climate
:
GBP - MPC Member Broadbent Speaks
:
EUR - German Buba Monthly Report
:
CAD - NHPI m/m
:
USD - NAHB Housing Market Index
:
NZD - Trade Balance

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86065 0.85595
gbp/usd 1.27039 1.26521
gbp/aud 1.89478 1.88474
gbp/nzd 2.04364 2.03024
usd/jpy 142.545 141.99
eur/usd 1.09298 1.08918
gbp/jpy 180.895 179.708
eur/cnh 7.79815 7.76521
usd/cnh 7.13852 7.12415
Equities and Commodities
Nasdaq 100 16664.7
DOW 37404.6
S&P 500 4735.44
BRENT CRUDE 77.24
WTI 71.95
GOLD 2023.76

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.

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