Marketwatch EU & UK

Daily Insights
July 21, 2023

Sterling is higher against the greenback this morning, hovering at the 1.2900 level after UK Retail data beat estimates. USD/JPY is up 0.1% to trade above 140 and AUD/USD slips 0.1% to 0.6774. EUR/USD ticks higher but remains trading mid 1.11-1.12. Yesterday, US initial jobless claims fell, suggesting resilience in the labour market, driving yields higher, with the 2-year yield gaining 7bps and the 10-year yield 10 bps.

UK Retail Sales Including Auto Fuel MoM was up 0.7% in the month of June vs. 0.2% estimated by economists. On a yearly basis, the same gauge dropped 1.0% vs. -1.6% estimated. Sterling rose as much as 0.3% to 1.2904, as bets that the BOE will remain hawkish build up, again.

Japan’s consumer prices advanced at a fast pace for the month of June in another indication that inflation remains sticky, a week before the BOJ policy meeting.

On other news, Spain will have a general election this Sunday, July 23. Polls suggest centre-right wing opposition PP is the one likely to win with most votes, but it may need the help of the far-right party Vox to govern. There are two potential economic outlook risks for Spain, the first one being Vox pushing PP to cut interest rates permanently in a country that has a high level of debt. Secondly, a change in government will put EUR 92million of EU money in doubt.

Have a good weekend.

We hope you have found our expertly curated MarketWatch analysis useful in navigating the ever-changing FX landscape. To enhance our services and make sure you receive the most relevant and timely insights we have recently made some exciting updates to our newsletter.

To continue receiving our curated MarketWatch insights, we kindly request you resubscribe to our mailing list here

Economic Calendar

GBP - Retail Sales m/m
CAD - Core Retail Sales m/m
CAD - Retail Sales m/m
AUD - Employment Change
AUD - Unemployment Rate
USD - Unemployment Claims

Market Indicators

Currency Pairs
Pair High Low
gbp/usd 1.2964 1.2841
eur/usd 1.1228 1.1119
eur/gbp 0.8698 0.8649
gbp/aud 1.9121 1.8854
gbp/nzd 2.0677 2.0498
usd/jpy 140.4900 139.1200
gbp/jpy 180.7000 179.7700
eur/cnh 2 2
Equities and Commodities
FTSE100 7,646.0500
DOW30 35,225.1800
SP500 4,534.8700

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.