Key Headlines

•            Friday's job numbers add to dovish pricing on Fed rates

•            Big week for GBP, with BoE and GDP numbers this week

Recap

Trading was relatively subdued in the absence of any major news or data points over the course of European trading hours. Overnight with Asian equities finishing lower, demand for USD picked up, seeing both GBPUSD and EURUSD hit 1-week lows.

Today’s Overview

Another quiet economic calendar today, with the only possible market mover being the Riksbank (Swedish central bank) monetary policy meeting this morning. The Bank are currently expected to cut interest rates from 4% to 3.75%, a move that would highlight the difference in rate expectations between Europe and the US. As a result, a cut today could see further demand for USD. Client focus remains heavily on tomorrow’s BoE meeting and how the vote split will pan out. Current expectations see a 7-2 split, with members Dave Ramsden and Swati Dhingra favouring a cut. Downside risks to GBP will come in the form of either the Bank hinting at a rate cut to come in June, and/or we have more than two members favouring a rate cut.

Equals Market Analysis– 8th  May 2024

Today’s Rates

Today's Interbank Rates at 09:10 am against GBP movement.

GBP>EUR – 1.1614

GBP>USD – 1.2471

EUR>USD – 1.0741

GBP>CAD – 1.7159

GBP>AUD – 1.8992

GBP>SEK – 13.647

GBP>AED – 4.5809

GBP>HKD – 9.7510

GBP>ZAR – 23.210

GBP>CHF – 1.1334

GBP>PLN – 5.0140

Speeches

•  EUR: Wunsch, De Cos

• USD: Fed Jefferson, Collins, Cook

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