Marketwatch EU & UK

Daily Insights
June 27, 2024

  • The US dollar endured a roller coaster session yesterday, rallying initially before retracing. The move can be blamed on several factors, including corporate month end related flows. The Japanese yen came under fresh pressure yesterday with USDJPY trading through 160, aided by quarter end flows, pushing the pair to levels not seen since 1986. The decline in the currency prompted fresh speculation that the government would step in again to support the ailing currency. Masato Kanda, Japan’s vice minister of finance and currency chief, yesterday said that officials are monitoring the foreign exchange markets with a high level of urgency and would take appropriate steps as needed.
  • The euro slipped further against the greenback yesterday pushing EURUSD to test 1.0670 before recovering. Political uncertainty in France continues to weigh on the single currency but the pair has so far held above the key support at 1.0650. France will remain under the spotlight in the coming days as we await the release of the May inflation report tomorrow ahead of the first round of elections this weekend.
  • The lack of UK data is keeping the pound sidelined, with GBPUSD dropping below 1.2620 yesterday before recovering a little. The pair currently sits towards the bottom of its recent range seeking direction, with the only event on the docket today being the release of the BoE financial stability report and minutes of its financial policy committee.

Economic Calendar

:
AUD - MI Inflation Expectations
:
NZD - ANZ Business Confidence
:
EUR - M3 Money Supply y/y
:
EUR - Private Loans y/y
:
GBP - BOE Financial Stability Report
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GBP - BOE Gov Bailey Speaks
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GBP - FPC Meeting Minutes
:
GBP - FPC Statement
:
EUR - Italian 10-y Bond Auction
:
AUD - RBA Deputy Gov Hauser Speaks
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USD - Final GDP q/q
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USD - Unemployment Claims
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USD - Core Durable Goods Orders m/m
:
USD - Durable Goods Orders m/m
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USD - Final GDP Price Index q/q
:
USD - Goods Trade Balance
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USD - Prelim Wholesale Inventories m/m
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USD - Pending Home Sales m/m
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USD - Natural Gas Storage
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NZD - Bank Holiday
:
USD - Bank Stress Test Results
:
JPY - Tokyo Core CPI y/y
:
JPY - Unemployment Rate
:
JPY - Prelim Industrial Production m/m

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.8466 0.84609
gbp/usd 1.26392 1.26125
gbp/aud 1.89957 1.89507
gbp/nzd 2.07845 2.07456
usd/jpy 160.715 160.297
eur/usd 1.06972 1.06769
gbp/jpy 202.75 202.486
eur/cnh 7.81086 7.7898
usd/cnh 7.30348 7.29384
Equities and Commodities
Nasdaq 100 19741.8
DOW 39160.9
S&P 500 5481.25
BRENT CRUDE 85.13
WTI 80.78
GOLD 2299.58

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.