Key Points:
• USD loses on jobless claims
• EU falls into technical recession
• Canada job numbers in focus
Recap
The USD came under pressure yesterday after the weekly initial jobless claims numbers came in higher than expected, causing US treasuries to drop and surprise, easing Fed rate expectations… albeit marginally. GBPUSD and EURUSD gained to prior resistance levels as a result due to interest rate differentials.
Europe has technically fallen into a recession as a revision on economic growth for this quarter came in lower than expected at -0.1%. Falling inflation and weaker growth numbers aren’t exactly the basis for the ECB to continue their rate hike cycle, but nonetheless money markets remain resolute in pricing two 0.25% hikes by the Bank over the next two months.
Today’s Overview
A very quiet day on the data front today with focus in the FX space largely falling on the Fed, ECB interest rate decisions next week, EU and US inflation numbers, and UK job numbers. USD took a knock yesterday following the jobless claims, with both GBPUSD and EURUSD now testing some key resistance levels in the market. A breach through here could see GBPUSD test the highs seen in May. GBPEUR continues to push higher, seemingly catching a second wind and set to target the highs seen earlier this month.
Equals Market Analysis– 09th June 2023
Today’s Rates
Today’s Interbank Rates at 09:40 am against GBP movement.
GBP>EUR – 1.1653
GBP>USD – 1.2545
EUR>USD – 1.1076
GBP>CAD – 1.6741
GBP>AUD – 1.8679
GBP>SEK – 13.598
GBP>AED – 4.6062
GBP>HKD – 9.8310
GBP>ZAR – 23.589
GBP>CHF – 1.1296
Today’s Calendar
· CAD Net Change in Employment(May)
· CAD Unemployment Rate(May)
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