Marketwatch EU & UK

Daily Insights
August 10, 2023

Yesterday was another quiet day for markets as investors await the release of the US July inflation report due this afternoon. The dollar index is broadly unchanged with both EURUSD and GBPUSD trading at similar levels to yesterday, hovering just below 1.10 and in the low 1.27’s respectively. The Japanese yen lost ground against the greenback and the single currency following the recent policy tweak from the BoJ. USDJPY traded through 144 for the first time since early July and EURJPY traded at a 15 year high with some blaming yen weakness on rising energy prices that may impact Japan’s deteriorating trade balance.

Traders and investors will be glued to their screens this afternoon for the US inflation report as we look for further clues on just when the Federal Reserve will reach the peak interest rate. Rising oil prices suggest that headline CPI is likely to increase in both July and August, however policymakers will likely focus on the core, which should keep moderating as growth slows. Analysts expect headline CPI to come in unchanged at 0.2%, with the year-on-year print nudging up slightly to 3.3%. Going forward, markets believe that headline inflation will remain in a tight range with the core rate falling in the coming months. The question remains – will today’s report be enough for the Fed to signal a pause at the September policy meeting?

Economic Calendar

AUD - MI Inflation Expectations
EUR - ECB Economic Bulletin
CNY - M2 Money Supply y/y
CNY - New Loans
USD - CPI m/m
USD - Core CPI m/m
USD - CPI y/y
USD - Unemployment Claims
USD - Natural Gas Storage
USD - 30-y Bond Auction
USD - Federal Budget Balance
USD - FOMC Member Harker Speaks
NZD - BusinessNZ Manufacturing Index
NZD - FPI m/m

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86396 0.86268
gbp/usd 1.27303 1.27065
gbp/aud 1.94747 1.94236
gbp/nzd 2.10065 2.09486
usd/jpy 144.084 143.682
eur/usd 1.09903 1.09672
gbp/jpy 183.407 182.688
eur/cnh 7.93843 7.9184
usd/cnh 7.22964 7.21412
Equities and Commodities
Nasdaq 100 13722.02
DOW 35123.36
S&P 500 4490.26
WTI 84.6
GOLD 1916.94

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.