Forexlive European FX news wrap: Choppy price action persists

• Riksbank’s Bunge says more confident that high inflation is behind us
• China’s Premier Li vows stronger policy coordination with timely implementation
• PepsiCo expect higher borrowing costs to impact consumer spending
• ECB’s Centeno: Inflation in the Euro Area converged towards goal
• US September NFIB small business optimism index 91.5 vs 91.2 prior
• Japan’s Akazawa says wage-price cycle progressing but full shift not yet achieved
• ECB’s Elderson: We will continue to gradually ease our restrictive stance
• Chinese equities remains close to session lows
• ECB’s Nagel: Open to October rate cut
• ECB’s Vaslle says a rate cut in October is an option
• Sour mood for risk sentiment this morning
• Iran’s FM to visit Saudi Arabia and regional nations to address escalating tensions
• More from Fed’s Kugler: The Fed is looking at trends in the labour market, not single data
• ECB’s Kazaks: Data points to October rate cut
• Fed’s Kugler: Support additional rate cuts if progress on inflation continues
• The @Newsquawk Europe Market Open: China’s NDRC press conference met with disappointment
• French Trade Balance data for August reveals a shortfall, impacting Exports
• What are the main events for today?
• Iran Warns Israel of Stronger Retaliation if Attacked Amid Rising Tensions
• German Industrial Production Beats Expectations at 2.9% Rise in August
• ECB Elderson Warns of Materialising Risks to Economic Growth Ahead of Key October Meeting
• Fed’s Williams Signals More Rate Cuts Ahead After September Reduction
• China’s Economic Planner Confident in Achieving 2024 Goals Despite Complex Challenges

It’s been another quiet session in terms of data releases. The only notable data point was the US NFIB Small Business Optimism index which ticked higher compared to the prior month.

We had also many ECB speakers confirming a rate cut in October which the market has already priced in weeks ago. The price action in the FX market remains rangebound as we continue to wait for the US CPI release on Thursday.

In the equity space, the Chinese markets continue to trade around the daily lows while the US and European markets have been grinding higher.

In the commodities space, crude oil is down 1.88% on the day since the peak hit in the overnight session at $78.46 with the pullback in the Chinese equities being the likely culprit. Copper is another big loser as it’s been even more sensitive to the Chinese markets lately. Gold, on the other hand, remains rangebound as the recent rally in real yields continues to weigh on the market.

The American session will be empty in terms of key data releases and the Fedspeak will take the centre stage once again as we get Fed’s Bostic and Fed’s Collins speaking.

This article was written by Giuseppe Dellamotta at www.forexlive.com.