Dear Reader,

 

Today's overview of economic news and market action

  • Last week, China stimulus package boosted equtiy markets …
  • Weak Eurozone PMI and cooling inflation data also affected sentiment …
  • Currency-wise, the euro and the dollar were under pressure …
  • Sees EUR/GBP open this morning in the bottom half of 83-84p …
  • GBP/USD is just below $1.34 …
  • EUR/USD remains in the top half of $1.11-1.12 …
  • USD/JPY is back below ¥142 …
  • This week, the focus will be on the US labour market report (Sept) …
 
Continue Reading
 
Today's Opening FX Rates
 
      % Change Day* End 2023
EUR/USD 1.1166   0.02 1.18
EUR/GBP 0.8338   -0.02 -3.81
GBP/USD 1.3388   0.02 5.18
GBP/EUR 1.1989   0.02 3.96
*versus Previous Day's European Open

All rates quoted are indicative market rates.
 
 
Weekly Market Brief - 30th September – 4th October
 

China’s stimulus to prop up weak economy

 

This week’s actions by the Chinese authorities mark a major short term stimulus for the domestic and global economies. The coordinated action by the monetary and fiscal authorities comes amid a slowing growth profile and a period of deflation over the past year. Within an economy with high levels of debt across many sectors, particularly real estate, a prolonged period of deflation would be particularly painful for highly leveraged Chinese households and industries. 
 
Read More
 
 
 
ECB Watch - September 2024
 

ECB cuts as expected, but vague guidance on rate outlook


The ECB cut interest rates for a second time this year at the September policy setting meeting of its Governing Council. The Deposit rate was lowered to 3.50%. Meanwhile, the refi rate was cut to 3.65%, which entailed a previously announced technical adjustment of a reduction in the spread between the Depo and Refi rates from 50bps to 15bps. 
 
Read More
 
Bank of England Watch - September 2024
 

The September meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank leave the Bank rate at 5.00%. This follows a 25bps cut implemented at its previous meeting in early August. The decision to cut in August represented the first rate change from the Bank of England in eight meetings.
 
Read More
 
US Federal Reserve Watch - September 2024
 

The September meeting of the US Federal Reserve Open Market Committee (FOMC) saw the central bank cut interest rates for the first time since 2020. The target range for the Fed funds rate was reduced by 50bps to 4.75-5.00%. It marks the first rate change from the Fed in nine meetings.
 
Read More