Marketwatch EU & UK

Daily Insights
June 14, 2024

  • US PPI came in softer than expected yesterday and follows a below consensus CPI report earlier this week. Headline PPI fell by 0.2% m/m, whilst the core was unchanged. Mixed data showed jobless claims saw a 13k gain this week raising concerns over the health of the labor market and whether layoffs are picking up. The US dollar remains well supported with EURUSD currently consolidating around this week’s low of 1.0720. A lack of economic data at the end of the week is likely to keep most pairs range bound.
  • The Japanese yen weakened against the greenback and its G10 peers after the BoJ kept interest rates unchanged at its policy meeting. USDJPY rallied through 158 after the central bank said that it would reduce debt purchases but delayed providing details until its next policy meeting. The Japanese currency has been the weakest of the G10 nations this year falling more than 10% against the dollar, as the gap between Japanese and US interest rates remains wide weighing on the yen. With just one cut from the Fed currently pencilled in, that yield gap will likely remain wide keeping the JPY soft against the greenback and close to levels where officials recently intervened to support the currency.
  • The pound is treading water and being driven by the US dollar as markets await key inflation data next week. After rallying to 1.2860 after the US inflation report, GBPUSD has slipped back to the bottom of its recent trading range to consolidate above 1.27. Traders will likely sit on the sidelines ahead of Wednesday’s CPI report and the BoE decision on Thursday.

Economic Calendar

:
JPY - BOJ Policy Rate
:
JPY - Monetary Policy Statement
:
JPY - Revised Industrial Production m/m
:
JPY - Tertiary Industry Activity m/m
:
JPY - BOJ Press Conference
:
EUR - French Final CPI m/m
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EUR - Italian Trade Balance
:
CNY - New Loans
:
CNY - M2 Money Supply y/y
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GBP - Consumer Inflation Expectations
:
EUR - Trade Balance
:
CAD - Manufacturing Sales m/m
:
CAD - Wholesale Sales m/m
:
USD - Import Prices m/m
:
USD - Prelim UoM Consumer Sentiment
:
USD - Prelim UoM Inflation Expectations
:
EUR - ECB President Lagarde Speaks
:
USD - FOMC Member Cook Speaks

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.84221 0.84175
gbp/usd 1.27632 1.27487
gbp/aud 1.92604 1.92156
gbp/nzd 2.074 2.07023
usd/jpy 157.988 156.773
eur/usd 1.07449 1.07348
gbp/jpy 201.457 200.049
eur/cnh 7.81157 7.8018
usd/cnh 7.27269 7.26737
Equities and Commodities
Nasdaq 100 19615.8
DOW 38620.5
S&P 500 5435.3
BRENT CRUDE 82.35
WTI 78.17
GOLD 2306.59

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

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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.