Marketwatch EU & UK

Daily Insights
November 28, 2023


  • flag united states 1f1fa 1f1f8Another day, another drop in the dollar, with greenback losing further ground against its G10 peers as the dollar index fell to its lowest level since August. The post US CPI fall continues, further influenced by month end flows which helped USDJPY fall towards 148. EURUSD is little changed, again consolidating in the mid 1.09’s after attempting to break higher, with the pair running into resistance around 1.0960. GBPUSD continues to trade within its recent range on a 1.26 handle, after attempting to follow EURUSD higher the pair again met resistance around 1.2640.
  • flag united kingdom 1f1ec 1f1e7In an interview yesterday, Bank of England Governor, Andrew Bailey suggested that UK interest rate cuts are unlikely for the “foreseeable future” and warned that the next round of the battle against inflation will be “hard work.” Whilst saying that the recent drop in inflation was “very good news” he cautioned that it is unlikely to be repeated. Inflation is still considerably above the central bank’s target and the governor, and his Chief Economist Huw Pill have highlighted the ongoing risk of sticky inflation, confirming that the MPC would be forced to hike again should inflation pressures return.
  • flag european union 1f1ea 1f1faEarly rate cuts from the ECB are also looking unlikely, with Bundesbank President Joachim Nagel saying that the central bank is not yet at a point where it should consider reducing borrowing costs. In an interview he said, “It would be premature to lower interest rates soon or to speculate about such steps.” We will learn more about the inflationary environment in the euro area in the coming days with the release of October’s inflation report, but it is looking safe to assume that the central bank has concluded its rate hiking campaign and will deliver a second consecutive pause at next month’s policy meeting.

Economic Calendar

GBP - BRC Shop Price Index y/y
AUD - Retail Sales m/m
AUD - RBA Gov Bullock Speaks
GBP - MPC Member Ramsden Speaks
JPY - BOJ Core CPI y/y
EUR - German GfK Consumer Climate
GBP - Nationwide HPI m/m
EUR - German Buba President Nagel Speaks
EUR - M3 Money Supply y/y
EUR - Private Loans y/y
GBP - 30-y Bond Auction
CNY - CB Leading Index m/m
USD - S&P/CS Composite-20 HPI y/y
USD - HPI m/m
USD - CB Consumer Confidence
USD - Richmond Manufacturing Index
USD - FOMC Member Goolsbee Speaks
USD - FOMC Member Waller Speaks
USD - FOMC Member Bowman Speaks
EUR - ECB President Lagarde Speaks
GBP - MPC Member Haskel Speaks
USD - FOMC Member Barr Speaks

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86756 0.86671
gbp/usd 1.26419 1.2609
gbp/aud 1.91208 1.90599
gbp/nzd 2.07168 2.06725
usd/jpy 148.547 147.968
eur/usd 1.09627 1.09343
gbp/jpy 187.52 187.05
eur/cnh 7.84281 7.82688
usd/cnh 7.15975 7.14689
Equities and Commodities
Nasdaq 100 15930.7
DOW 35323.5
S&P 500 4547.15
WTI 75.03
GOLD 2013.2

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


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.