Marketwatch EU & UK

Daily Insights
August 9, 2023

Major currencies remain range-bound midweek, with the dollar index slipping a touch as EURUSD rallies a little after dropping yesterday. The pair failed to hold above the key 1.10 area yesterday, dropping to find support at 1.0950 and is currently treading water, seeking direction. With a lack of European data releases and summer holiday impacted liquidity woes, the pair continues to take its lead from the US, with tomorrow’s US CPI release eagerly anticipated.

The lack of European and US data has pushed China to the forefront, with data released overnight showing that both consumer and producer prices declined in July from a year ago. Markets believe that the bout of deflation may be temporary as PBoC policymakers face ongoing pressure to step up on both monetary and fiscal support. CPI dropped 0.3% last month from a year earlier, marking its first decline since February 2021 and producer prices fell for a tenth consecutive month. This is the first time since November 2020 that both consumer and producer prices registered a contraction.

The pound slipped a little yesterday, following EURUSD south as gilt yields fell following somewhat disappointing data from the British Retail Consortium which showed that like for like July retail sales rose less than in June. After starting the week on solid ground, GBPUSD fell below 1.2750 before recovering slightly as we await the key US data in the coming days.

Economic Calendar

CNY - CPI y/y
CNY - PPI y/y
NZD - Inflation Expectations q/q
JPY - Prelim Machine Tool Orders y/y
GBP - 10-y Bond Auction
EUR - German 10-y Bond Auction
CAD - Building Permits m/m
USD - Crude Oil Inventories
USD - 10-y Bond Auction
GBP - RICS House Price Balance
JPY - PPI y/y

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.86026 0.85894
gbp/usd 1.27821 1.27392
gbp/aud 1.95151 1.94353
gbp/nzd 2.10621 2.09525
usd/jpy 143.401 142.995
eur/usd 1.09828 1.09548
gbp/jpy 182.929 182.429
eur/cnh 7.93883 7.91188
usd/cnh 7.2441 7.21338
Equities and Commodities
Nasdaq 100 13884.82
DOW 35314.49
S&P 500 4509.37
WTI 82.81
GOLD 1930.06

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.