Marketwatch EU & UK

Daily Insights
September 26, 2023

  • The US dollar advances for the fifth consecutive day as US yields edge higher on hawkish comments by Fed’s President Neel Kashari, where he stated that the Federal Reserve needs to raise interest rates again this year and keep the economy in a tight policy regime for longer.
  • USD/JPY trades over 149, with the Yen weakening past this level for the first time since November.
  • EUR/USD continues to drift lower, holding below 1.06. Next key support seen at 1.05.
  • GBP/USD is 0.30% lower, after breaking some support at 1.22, currently sits around 1.217. Next big support seen at 1.18.
  • EUR/GBP made its way to key resistance of 0.87, but it has failed to break this level multiple times.
  • WTI Crude is down 0.2% to trade around $89.52/bbl.
  • US Treasuries continue to decline, leading 10-year and 30-year yields to new multiyear highs, as expectation that the Federal Reserve will maintain a higher for longer interest rate policy and the issuance of new bonds will keep increasing as the US government struggles with mounting deficits.
  • Soaring demand for Gold in China is the ultimate sign of “economic anxiety”. Combining a weak yuan, a crashing housing market and capital controls not allowing money to leave the country, investors have turned to gold.

Economic Calendar

:
JPY - BOJ Core CPI y/y
:
GBP - 10-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 - New Home Sales
:
USD - Richmond Manufacturing Index
:
USD - FOMC Member Bowman Speaks
:
JPY - Monetary Policy Meeting Minutes

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86849 0.8668
gbp/usd 1.22147 1.21873
gbp/aud 1.90331 1.89813
gbp/nzd 2.04759 2.04311
usd/jpy 149.045 148.704
eur/usd 1.05929 1.05783
gbp/jpy 181.805 181.524
eur/cnh 7.7461 7.7309
usd/cnh 7.31589 7.303
Equities and Commodities
Nasdaq 100 14688.9
DOW 33875.5
S&P 500 4319.17
BRENT CRUDE 92.6
WTI 89.2
GOLD 1913.03

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.