The Dollar Index closed up 0.1% on Friday to reduce a third weekly loss to 0.2%. The US Dollar opened this week mixed against its G10 peers as the trading week goes underway.
Following rate decisions last week, Fed officials will be speaking at a number of places across the US. This includes Chair Jerome Powell at the Treasury Market Conference on Thursday. With the Fed cutting by 50bps last week, traders will be paying close attention to comments made. With market pricing suggesting a close call between a 25 or 50bps cut in November, this should provide clearer direction.
This Friday US Core PCE will be released, the Fed’s preferred inflation gauge.
Euro dollar started the day above 1.1150, but is currently trading closer to 1.11 ahead of EU PMI data.
Economic news this week includes Flash PMI data and SNB and Riksbank interest rate decisions.
Euro-Area PMI data will be released today. Previously at 51.0, Italy and Germany manufacturer confidence will be the main influence to any changes.
Sweden’s Riksbank interest rate is currently at 3.50%, with a predicted cut of 25bps to 3.25% on Wednesday.
SNB will follow similar movement as the Riksbank on Thursday, cutting from 1.25% to 1.00%.
The British Pound has reached its highest level against the USD in two and a half years following a hawkish rate hold from the BoE.
Major events this week include UK Flash PMI data for September. Previously 51.0, estimates are 53.5. This will provide further indication of UK growth development during the third quarter.
The upcoming UK budget at the end of October will be a deciding factor on UK economic direction and sentiment for the coming months.
Other World News
Australia’s RBA will be releasing their interest rate decision tomorrow. The general consensus is rates holding at 4.35%.
Sri Lanka’s new leftist president is being sworn in today. After winning a landslide victory, Anura Kumara Dissanayake will repair the damage left by the old ruling group after the IMF $3 billion bailout.
Ukraine’s President Zelensky has begun a visit to the US in hopes of sharing a “victory plan” to force Russia to end the war. Along with addressing the UN General Assembly in New York to increase support, Zelensky will push Biden to give an official invitation for Ukraine to join NATO.
