The US Dollar Index remains near the key 103.00 level as it awaits further direction from CPI figures on Thursday.
Yesterday, Fed member Philip Jefferson said risks to employment and inflation goals are now closer to equal. With inflation getting closer to their 2% target, and a surprisingly strong jobs report released last week, the Fed seems to be reaching a soft landing.
If you’ve watched the weather reports, you would have heard of Hurricane Milton. This Category 5 hurricane is expected to reach Tampa Bay, Florida later today, causing havoc in the area. Oil and insurance are the main stock sectors to watch as this event unfolds.
EURUSD is trading between 1.0950-1.10, staying within similar levels from the past couple of days.
ECB’s Frank Elderson will deliver a speech today, before the ECB Monetary Policy Meeting Accounts are released tomorrow. This will provide some indication of the ECB Governing Council’s assessment of the economy and policy responses.
Cable is trading below 1.31 at the start of the day, with the US Dollar consolidating recent gains amid risk aversion. Market participants await the BoE Monetary Policy Reports tomorrow.
World News
NZDUSD fell as much as 1% to 0.6076, its lowest since Aug. 19, after the Reserve Bank of New Zealand cut interest rates by 50bps. This was due to restrictive monetary policy, and the Kiwi dollar could fall to as low as 0.6050 as experts see a 75bps cut in November.
AUDNZD has recovered from an earlier drop of 0.3%, rising by 0.1% to 0.6752.
