Dear Reader,

Today's overview of economic news and market action: 

• There was a mixed mood on markets yesterday, amid a relatively quiet start to the week …
• On the monetary policy front, a number of Fed officials struck a slightly hawkish tone yesterday …
• Currency-wise, the main pairs operated in narrow ranges throughout the European session …
• Meantime, the dollar was on the defensive …
• This sees EUR/USD open this morning up at the $1.18 threshold …
• GBP/USD is changing hands above the $1.35 handle …
• EUR/GBP remains in the lower half of 87-88p …
• Today, the flash PMIs (Sept) in the Eurozone, UK and US are due …
• Remarks from central bank officials, including Chair Powell and Governor Bailey are also due …

All rates quoted are indicative market rates.

The September meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank maintain the Bank Rate at 4.00%. This was very much in line with market expectations. Once again, there was no unanimity within the MPC on its policy decision to hold rates steady.

The September meeting of Federal Reserve Open Market Committee (FOMC) saw the central bank cut interest rates for the first time since December of last year. The target range for the Fed funds rate was lowered to 4.00-4.25%.