Marketwatch EU & UK

Daily Insights
September 4, 2024

  • Markets went into ‘risk off’ mode overnight ahead of the eagerly anticipated Non-farm Payroll report on Friday. Equity markets fell and the price of oil continued to fall as tensions in Ukraine/Russia and the Middle East kept helped to keep risk takers on the sidelines. The US ISM data was the highlight for yesterday with the manufacturing report coming out at 47.2, a slight improvement from last month’s 46.8 and a touch below expectations. The manufacturing sector clearly remains in the doldrums; however, analysts do not believe that the poor performance is currently sufficient to drag the economy into a recession. Employment data scheduled over the next three days will likely shape the Fed’s upcoming monetary decision and the data dump kicks off with the JOLTs job openings today along with the release of the Fed’s Beige Book this evening.
  • EURUSD appears to be going nowhere fast, consolidating in the mid 1.10’s after dropping from last week’s highs. 1.0990 is decent support on the downside and the pair is likely to be rangebound ahead of Friday’s payrolls.
  • GBPUSD is holding up well, trading around 1.31 after running out of steam after its Jackson Hole rally. Cable is unlikely to react significantly to today’s Services PMI report which is expected to come in unchanged at 53.3.

Economic Calendar

:
NZD - ANZ Commodity Prices m/m
:
AUD - GDP q/q
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CNY - Caixin Services PMI
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EUR - German Retail Sales m/m
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EUR - Spanish Services PMI
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EUR - Italian Services PMI
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EUR - French Final Services PMI
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EUR - German Final Services PMI
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EUR - Final Services PMI
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GBP - Final Services PMI
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EUR - PPI m/m
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CAD - Trade Balance
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USD - Trade Balance
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GBP - Monetary Policy Report Hearings
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CAD - BOC Rate Statement
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CAD - Overnight Rate
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USD - JOLTS Job Openings
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USD - Factory Orders m/m
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USD - Wards Total Vehicle Sales
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CAD - BOC Press Conference
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USD - Beige Book
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JPY - Average Cash Earnings y/y

Market Indicators

Currency Pairs
Pair High Low
eur/gbp 0.84334 0.84242
gbp/usd 1.31189 1.3101
gbp/aud 1.95993 1.9526
gbp/nzd 2.12425 2.11886
usd/jpy 145.552 144.886
eur/usd 1.10599 1.10463
gbp/jpy 190.846 189.946
eur/cnh 7.86855 7.8527
usd/cnh 7.12123 7.10457
Equities and Commodities
Nasdaq 100 18816.5
DOW 40778.3
S&P 500 5500.28
BRENT CRUDE 73.36
WTI 69.9
GOLD 2494.92

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.