Marketwatch EU & UK

Daily Insights
July 27, 2023

The Aussie Dollar fell this morning as investors cut bets that the Reserve Bank of Australia will hike interest rates by 25 basis points at their next meeting following weak CPI data. AUD/USD dropped 0.9% on the news. As markets wait for the Fed’s decision this evening, EUR/USD is higher trading around 1.1070 and GBP/USD hovering at the 1.29 level. USD/JPY struggles to keep above 141, and it is now trading mid 140-141. The Bloomberg Dollar Spot Index advances 0.1%.

The Federal Reserve is poised to lift interest rates by 25 basis points to the highest level in 22 years to the 5.25%-5.5% range, while retaining a tightening bias that could lead to an additional move later this year. The market focus will be on Powell’s speech and to assess on how determined the central bank is to keep tightening this year, especially after inflation pressures declined last month which led investors to diminish expectations on further increases until the end of the year (against many FOMC members that are still expecting a last hike later in the year).

On other news, Oil trimmed a four-day rally as traders took stock of the advance and get prepared for the FOMC decision. In the UK, British billionaire Joe Lewis, owner of the Tottenham Hotspur football club, has been charged with insider trading in the US.

Economic Calendar

AUD - CPI q/q
AUD - Trimmed Mean CPI q/q
AUD - CPI y/y
USD - Federal Funds Rate
USD - FOMC Statement
USD - FOMC Press Conference

Market Indicators

Currency Pairs
Pair High Low
gbp/usd 1.29771 1.29263
eur/usd 1.1118 1.10773
eur/gbp 0.85702 0.856
eur/gbp 0.85702 0.856
usd/jpy 140.484 139.377
Equities and Commodities
DOW 35,438.0700
SP500 4,567.4600
FTSE100 7,691.8000
Nasdaq 100
S&P 500

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.