Marketwatch EU & UK

Daily Insights
October 3, 2023

  • flag united states 1f1fa 1f1f8The US dollar remains elevated against its G10 peers, supported by higher yields, boosting the dollar index. The ongoing theme of ‘higher for longer’ continues to keep the greenback bid, and this message was further reiterated yesterday by the Federal Reserve Bank of Cleveland President. Loretta Mester said that the Fed will likely need to raise rates one more time this year and then hold them at higher levels for some time to get inflation back to its 2% target.
  • flag european union 1f1ea 1f1faThe single currency slipped again against the greenback, with EURUSD touching its lowest level since last December, trading around 1.0460, where it is currently consolidating. Yesterday’s manufacturing PMI numbers for the eurozone failed to provide any support and respite for the euro and markets will turn their attention to a speech from ECB Chief Economist Philip Lane this morning. With EURUSD falling below recent support levels the latest drop potentially gives the bears a run at the 1.0390 area, whereas a break above 1.0520 would support a move to test the 50-day MA.
  • flag united kingdom 1f1ec 1f1e7The pound followed the euro lower with cable dropping below the psychological 1.21 level to trade as low as 1.2061. The next level of support on the downside comes in at 1.2050, which opens up a potential test of the psychological 1.20 area. With little UK data to focus on, markets will be driven by the US labor market data coming out in the next few days. Job Opening data is due out this afternoon with markets looking for confirmation that the labor market continues to soften.
  • oil drum 1f6e2 fe0fThe price of oil has fallen again overnight after falling to the lowest level in three weeks in the previous session. Brent crude fell to $90 per barrel, driven by rising US yields and the strength of the greenback.

Economic Calendar

CNY - Bank Holiday
AUD - ANZ Job Advertisements m/m
AUD - Building Approvals m/m
AUD - Cash Rate
AUD - RBA Rate Statement
JPY - 10-y Bond Auction
AUD - Commodity Prices y/y
CHF - CPI m/m
EUR - French Gov Budget Balance
EUR - Spanish Unemployment Change
EUR - German Bank Holiday
GBP - 30-y Bond Auction
CAD - Gov Council Member Vincent Speaks
USD - JOLTS Job Openings
USD - IBD/TIPP Economic Optimism
USD - Wards Total Vehicle Sales
NZD - GDT Price Index

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86758 0.86636
gbp/usd 0.8291 0.82704
gbp/aud 1.91294 1.89934
gbp/nzd 2.04341 2.03418
usd/jpy 149.934 149.65
eur/usd 0.95602 0.95414
gbp/jpy 181.182 180.741
eur/cnh 7.67511 7.6599
usd/cnh 7.33 7.31451
Equities and Commodities
Nasdaq 100 14832.5
DOW 33413.9
S&P 500 4290.29
WTI 88.45
GOLD 1821.46

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.