Daily Market Update 24/04/2023

Key Points:

•            UK house prices continue to drop

•            ECB Wunsch pushes case for 4% interest rates

•            US and EU data in focus this week

Last week: Recap

The week finished with trading staying within the trading ranges of the week. Composite PMI data from the UK, EU, and the US all came in higher than expected indicating better than expected economic activity to kick Q2. We saw GBPUSD test both support and resistance levels as markets attempted to digest the good news on both sides of the pond. Data this morning from Rightmove showed that the rate of growth in house prices fell to the lowest since January 2020, highlighting the impact of higher interest rates on house affordability and demand for properties.

Today’s Overview

Quiet day to start the last week of April with most of the key data out later in the week. US GDP, core PCE, and employment cost index will be the main focal points for markets to decipher rate cuts by the Fed later in the year. And from Europe, GDP data for the EU area and Germany, as well as inflation figures from Germany, will be the highlight. Already this morning ECB member Pierre Wunsch was quoted in the FT suggesting that interest rates will continue to rise in Europe until wage growth slows, we could see peak rates at 4% – this is vs the markets pricing of 3.75%. Stronger GDP and CPI data from Europe and Germany will add to the argument that the ECB can continue to hike rates. UK data points are thin on the ground this week.

Equals Market Analysis– 24th April 2023

Today’s Market Rates

Today’s Interbank Rates at 08:57 am against GBP movement.

GBP>EUR – 1.1320

GBP>USD – 1.2434

EUR>USD – 1.0987

GBP>CAD – 1.6841

GBP>AUD – 1.8606

GBP>SEK – 12.8155

GBP>AED – 4.5666

GBP>HKD – 9.7610

GBP>ZAR – 22.623

GBP>CHF – 1.1076

Today’s Highlights

·        09:00 EUR  IFO – Business Climate(Apr)

·        09:00 EUR  IFO – Current Assessment(Apr)

·        09:00 EUR  IFO – Expectations(Apr)

·        13:30 USD  Chicago Fed National Activity Index (Mar)


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