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There
was ongoing chatter about the likelihood of a 50bp interest rate cut
from the US Federal Reserve’s Federal Open Market Committee (FOMC)
on September 18. This weighed on the US dollar during the session
here. EUR, GBP and JPY all rose against the USD, albeit in limited
ranges.
Activity
was limited during the session with China, Japan, and South Korea all
closed for holidays. China will remain closed tomorrow, Tuesday.
–
That
summary doesn’t capture a flow of news and data from the weekend
and into the session. The big news was in US politics, where shots
were fired ‘in the vicinity’ of ex-President Trump. It appears
that Trump’s protective Secret Service detail engaged a suspected
shooter, firing shots. Trump was a good distance away and was
completely unharmed, thankfully. The FBI is treating the event as an
attempted assassination attempt on Trump, the second in 60 days.
Also
of note, on Saturday China’s National Bureau of Statistics (NBS)
released very poor data for economic activity in August, and for home
prices slumping at a more rapid pace in August than in July (July
stabilisation measures appear to have dissipated). On the economic
data for August (more in the points above):
As
is usually the case the weak data brought calls for increased
stimulus. If the pattern of the past couple of years persists any
further stimulus will be piecemeal only, though.
On
the central bank front, Bank of Canada Governor Macklem was
interviewed by the Financial Times. He raised the prospect of quicker
cuts ahead, citing the labour market pointing towards downside risks.
USD/JPY remained heavy:
This article was written by Eamonn Sheridan at www.forexlive.com.
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