Marketwatch EU & UK

Daily Insights
September 3, 2024

  • It has been a quiet start to the week, with thin liquidity due to yesterday’s Labor Day holiday in the US, which kept the dollar index little changed on the day. The single currency moved a touch higher before losing traction as German consumer expectations fell to 96.9 in September from 97.7 in August. EURUSD ran into offers around 1.1080 slipping to consolidate around 1.1050 as markets await key US data later this week.
  • This afternoon’s ISM Manufacturing PMI data will be closely monitored ahead of the labor market reports later this week for clues on the outlook for the US economy. Markets remain hopeful of a ‘goldilocks scenario’ as the world’s largest economy appears to be heading for a soft landing as traders pare bets on rate cuts from the Fed. Markets are looking for a small increase on last month’s manufacturing report however expectations of a 47.7 release against last month’s 46.8 would keep the print below the 50 mark which separates expansion from contraction. The Fed remain on course to cut their key interest rate at the September policy meeting with a likely move of 25bp, but this week’s employment data may signal the need for a larger move.
  • GBPUSD continues to consolidate after trading through 1.32 at the end of August. The lack of UK data this week means that cable will likely be influenced by event across the pond. The pair continues to trade well and remains one of the best performing currencies in G10 this year.

Economic Calendar

:
AUD - Current Account
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JPY - 10-y Bond Auction
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CHF - CPI m/m
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EUR - French Gov Budget Balance
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CHF - GDP q/q
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EUR - Spanish Unemployment Change
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CAD - Manufacturing PMI
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USD - Final Manufacturing PMI
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USD - ISM Manufacturing PMI
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USD - ISM Manufacturing Prices
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USD - Construction Spending m/m
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USD - RCM/TIPP Economic Optimism
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NZD - GDT Price Index
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EUR - German Buba President Nagel Speaks

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.84331 0.84182
gbp/usd 1.3147 1.31084
gbp/aud 1.94938 1.93509
gbp/nzd 2.12207 2.10771
usd/jpy 147.208 145.931
eur/usd 1.10702 1.1051
gbp/jpy 193.359 191.449
eur/cnh 7.88665 7.8659
usd/cnh 7.1273 7.11269
Equities and Commodities
Nasdaq 100 19519.8
DOW 41485.1
S&P 500 5643.24
BRENT CRUDE 77.2
WTI 73.96
GOLD 2494.35

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.