The US dollar is trading in a narrow range against major peers as investors await producer and consumer price prints later today along with the Federal Reserve minutes. Markets are looking for clues on what is still a knife-edge situation for the next meeting and whether to expect a hold or a hike.- Last night speeches among Fed members have been inconsistent, with Atlanta’s Raphael Bostic suggesting that the current policy is sufficient to get inflation back to its 2% target and, on the other hand, his Minneapolis colleague, Neel Kashari, stated that he is not convinced yet that the latest surge in yields is enough to tame any further rate hikes.
In Europe, 1 and 3-year CPI expectations are due today and investors are keen on this data as it will have implications on the ECB’s monetary policy down the line. Germany Harmonized Inflation YoY came in line with expectations at 4.3%.- The Euro currently hovers around the 1.06 level against the greenback, but trading in a tight range and any move much higher should be short-lived. Next key resistance around 1.0650.
The BOE may need to lift interest rates at least once again and leave them at a high level for most of next year, according to the IMF assumptions. Sterling was lifted on this news, currently trading near the 1.23 level against the US dollar. Against, the Euro, has also gained, with the pair currently trading around 0.8635.
Chinese government bonds have seen their yields rise on reports that policymakers are considering fiscal stimulus. Both onshore and offshore Yuan are little changed, with USD/CNY at 7.2940 and USD/CNH at 7.2908.
Marketwatch EU & UK
Daily insights into the latest global market news
Daily Insights
October 11, 2023
Economic Calendar
11 Oct 2023
1:30am:
AUD - RBA Assist Gov Kent Speaks
6:00am:
EUR - German Final CPI m/m
6:00am:
JPY - Prelim Machine Tool Orders y/y
8:15am:
USD - FOMC Member Bowman Speaks
9:03am:
CNY - New Loans
9:03am:
CNY - M2 Money Supply y/y
9:33am:
GBP - 10-y Bond Auction
9:34am:
EUR - German 30-y Bond Auction
12:30pm:
CAD - Building Permits m/m
12:30pm:
USD - Core PPI m/m
12:30pm:
USD - PPI m/m
2:15pm:
USD - FOMC Member Waller Speaks
2:15pm:
All - IMF Meetings
5:01pm:
USD - 10-y Bond Auction
6:00pm:
USD - FOMC Meeting Minutes
9:45pm:
NZD - FPI m/m
11:01pm:
GBP - RICS House Price Balance
11:50pm:
JPY - Bank Lending y/y
11:50pm:
JPY - Core Machinery Orders m/m
11:50pm:
JPY - PPI y/y
Market Indicators
Currency Pairs
| Pair | High | Low |
| eur/gbp | 0.86243 | 6 |
| gbp/usd | 1.23037 | 1.22834 |
| gbp/aud | 1.91608 | 1.90867 |
| gbp/nzd | 2.04095 | 2.03163 |
| usd/jpy | 148.955 | 148.424 |
| eur/usd | 1.06141 | 1.0599 |
| gbp/jpy | 183.018 | 182.588 |
| eur/cnh | 7.7347 | 7.722 |
| usd/cnh | 7.295 | 7.27754 |
Equities and Commodities
| Nasdaq 100 | 15161.4 |
| DOW | 33734.4 |
| S&P 500 | 4361.43 |
| BRENT CRUDE | 87.74 |
| WTI | 86.09 |
| GOLD | 1860.4 |
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.
