Marketwatch EU & UK

Daily Insights
November 16, 2023

  • Mixed US data yesterday kept the US dollar range bound with the dollar index gaining a touch after losing ground earlier in the week after the lower-than-expected CPI release. Headline Retail Sales came in slightly stronger than expected at -0.1%, and PPI came in softer than predicted with most of the weakness attributed to lower gas prices. The single currency continues to consolidate above 1.08 after its post CPI rally, with 1.0805 remaining a pivotal level in EURUSD. In the absence of any euro area data releases today, markets will look to speeches from several ECB speakers throughout the day for clues on the direction of EURUSD.
  • Sterling struggled to hold on to its recent gains and slipped further after yesterday’s UK inflation report with cable falling through 1.24, where it continues to consolidate. The high recorded on Tuesday of 1.2506 acts as initial resistance with support coming in at 1.2364 ahead of the 55-day MA at 1.2284. With nothing on the docket today, markets will be waiting for tomorrow’s Retail Sales report for clues on the strength of the UK economy.
  • This afternoon the attention shifts back to the US as we await the release of weekly jobless claims, Import Price Index, Industrial Production, and the Philly Fed Business Outlook. Risk appetite continues to be influenced by geopolitical news and headlines coming from the ongoing meetings between US President Biden and Chinese President Xi Jinping appear positive.

Economic Calendar

:
AUD - MI Inflation Expectations
:
AUD - Employment Change
:
AUD - Unemployment Rate
:
CNY - New Home Prices m/m
:
JPY - Tertiary Industry Activity m/m
:
EUR - Italian Trade Balance
:
EUR - Spanish 10-y Bond Auction
:
EUR - ECB President Lagarde Speaks
:
USD - FOMC Member Barr Speaks
:
CAD - Housing Starts
:
USD - Unemployment Claims
:
USD - Philly Fed Manufacturing Index
:
USD - Import Prices m/m
:
USD - Industrial Production m/m
:
USD - Capacity Utilization Rate
:
USD - FOMC Member Williams Speaks
:
USD - NAHB Housing Market Index
:
USD - Natural Gas Storage
:
USD - FOMC Member Waller Speaks
:
GBP - MPC Member Ramsden Speaks
:
USD - FOMC Member Cook Speaks
:
USD - TIC Long-Term Purchases
:
NZD - PPI Input q/q
:
NZD - PPI Output q/q

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.87601 0.87363
gbp/usd 1.2424 1.23765
gbp/aud 1.91768 1.90575
gbp/nzd 2.07574 2.06021
usd/jpy 151.426 151.117
eur/usd 1.08557 1.083
gbp/jpy 187.915 187.308
eur/cnh 7.87883 7.8639
usd/cnh 7.2686 7.25045
Equities and Commodities
Nasdaq 100 15803.8
DOW 34966.1
S&P 500 4503.32
BRENT CRUDE 80.38
WTI 75.8
GOLD 1965.1

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

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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.