After some movement from the DXY this week, the index is currently trading at 100.7, similar to levels at the beginning of the week.
US PCE Price Index for August is coming out later this day, predicted to rise 0.2% MoM and 2.7% YoY in August. This is key inflation data, however any changes at the PCE release will unlikely influence the dollar’s price action, as the market is looking at next week’s crucial Nonfarm Payrolls.
Euro-dollar is trading at 1.1164, moving towards the 1.11 level due to increased dovish ECB bets. Recent French and Spanish inflation data came in softer than expected, increasing October ECB rate cut bets.
The Swiss franc is nearing its strongest level in almost a decade with planned interest rate cuts more gradual than its peers. End of year predictions from JP Morgan analysts is EURCHF reaching 0.90 with the caveat that the SNB avoids stronger rate cuts. This comes after the SNB cut rates by 25bps to 1% this week.
Cable strengthened by 0.3% since the beginning of the week. After breaking through the 1.34 level a few times, it has consolidated around 1.3350.
EURGBP is trading near 0.8350, with ECB officials delivering speeches in Ireland and Austria later this day. A major focus for the pair will be ECB and BoE rate cut decisions. Experts predict BoE having a slower rate-cutting cycle, leading to downward pressure on the EURGBP cross.
World News
Japanese election results have come in, with Shigeru Ishiba, leader of the Liberal Democratic Party, to become Japan’s new PM. As a strong advocate of supporting BoJ efforts to tighten monetary policy, it may lead to the yen moving higher in the coming months. The election results led to dollar-yen falling by 1% to 143.29.
