Marketwatch EU & UK

Daily Insights
September 5, 2023

The US Dollar resumed gains post Labor Day as risk sentiment has been further deteriorated following China’s PMI release, which showed that the services sector activity slowed in August. The yuan weakened also as the greenback hit a three-month high, with USD/CNH gaining 0.2% to 7.2920. The Aussie dollar continues to register losses after the RBA kept its key rate unchanged, trading currently at 0.6386. USD/JPY heads towards 147 and EUR/USD continues to edge lower, having crushed the 1.08 level. GBP/USD is also lower, breaking through 1.26 handle.

ECB’s Christine Lagarde failed to give an indication of the central bank’s following steps for the next meeting, at a speech she delivered in London yesterday. The main question remains whether another raise is coming or if they will pause, one of the most uncertain decisions in a yearlong battle against inflation. ECB officials will meet on the 14th of September and must reflect on whether a recent slowdown in the economy is enough to stop interest rates from rising again. Eurozone PPI, and Eurozone and Germany PPIs are due to be released today and re-assure the ECB that the economy is contracting.

In other news, Oil is trading near its 1-year high after OPEC + cut supply which led to a tightening in the market, leading WTI Crude to edge +0.4% to $85.93/bbl.

Economic Calendar

NZD - ANZ Commodity Prices m/m
AUD - Current Account
CNY - Caixin Services PMI
JPY - 10-y Bond Auction
AUD - Cash Rate
AUD - RBA Rate Statement
EUR - Spanish Services PMI
EUR - Italian Services PMI
EUR - French Final Services PMI
EUR - German Final Services PMI
EUR - Final Services PMI
GBP - Final Services PMI
EUR - PPI m/m
USD - Factory Orders m/m
USD - IBD/TIPP Economic Optimism
NZD - GDT Price Index

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.85531 0.85447
gbp/usd 1.26318 1.26065
gbp/aud 1.97191 1.95457
gbp/nzd 2.13782 2.12598
usd/jpy 146.875 146.488
eur/usd 1.07983 1.07804
gbp/jpy 185.299 184.958
eur/cnh 7.8689 7.8505
usd/cnh 7.2965 7.27256
Equities and Commodities
Nasdaq 100 15472.3
DOW 34767.1
S&P 500 4508.66
WTI 85.81
GOLD 1935.65

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


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.