The US Dollar is keeping its positive momentum this morning with the DXY Index opening the session at 102.46.
Fed representatives are speaking today, with key insights from Williams, Kugler, Bostic, and Jefferson, where they will be discussing monetary policy and global inflation.
Focus remains on the release of the FOMC meeting minutes on Wednesday, followed by CPI and PPI data. This data will provide a key role in USD demand.
EURUSD is consolidating below the 1.10 mark as markets wait for key data further in the month.
German Industrial Production data was released, jumping 2.9% MoM in August compared to 0.8% expected. This positive data did little to affect general market sentiments of the single currency, with current predictions for the next ECB meeting on Oct 17 to have a 94% chance of a 25bps cut.
Cable is trading below 1.31, delaying its recovery from multi-week lows. With dovish comments from BoE Governor Bailey and better than expected US NFP data, there are reduced bets for another oversized interest rate cut by the Fed in November.
World News
China’s NDRC press conference has released news that China will not continue their stimulus support, impacting G10 currencies.
With China being Australia’s biggest trading partner, AUDUSD dropped as much as 0.6%, dragging it lower along with most Asian currencies. Along with this news, RBA September Meeting Minutes were released. The general view was that “policy will need to remain restrictive until board members are confident inflation is moving sustainably towards the target range.”
