The DXY rose by 0.6%, recovering after a 0.5% drop on Tuesday. With many of the majors falling more than 1% against the greenback, month-end flows are helping boost the USD after a volatile month.
Yesterday, Fed Governor Adriana Kugler said that she “strongly supported” the decision by the FOMC to cut interest rates by 50bps at the last meeting. Future cuts will hinge heavily on data concerning inflation, employment, and economic activity that will have to evolve before any firm decisions are made.
Overnight EURUSD fell by 0.5% to 1.1130.
Today’s SNB policy decision has caused the Swiss franc to trade in a tight range, with swap pricing revealing that the market is uncertain between a 25bps or 50bps cut.
ECB President Lagarde will be speaking at the European Systemic Risk Board (ESRB), where discussions with policymakers, central bankers and academics will take place with a focus on new frontiers in macroprudential policy.
Cable started the day around 1.3320 after BoE rate-setter Megan Greene spoke on BoE needing to take a more cautious approach to cutting interest rates. This is due to the risk of longer-term inflation pressures. She stated, “I believe a cautious, steady-as-she-goes approach to monetary policy easing is appropriate.”
Today, Prime Minister Starmer will be delivering a speech to world leaders at the UN General Assembly. Coming straight from the Labour Party Conference, with a theme of “Change Begins”, it is likely Starmer will make promises on better global leadership from Britain.
Starmer is balancing a number of priorities at the moment. Currently he is urging Britons to leave Lebanon in light of increasing Israeli attacks, with the US and allies calling for a 21-day ceasefire. On a domestic level, he is tackling donation allegations that today includes a £20,000 donation for his son to study and sit his exams without any disturbances.
World News
China is continuing to roll out measures to support their struggling economy, where they may insert up to 1 trillion yuan (142 billion US dollars) of capital into its biggest state banks. Additionally, they will provide one-off cash handouts to citizens in extreme poverty.
