Dear Reader,

Today's overview of economic news and market action: 

• Positive tone to risk appetite yesterday despite US government shutdown
• Equity indices on both sides of the Atlantic posted gains
• Currency-wise, main pairs confined to narrow ranges
• Euro is marginally softer over the past 24 hours
• EUR/USD is back below the midpoint of $1.17-1.18
• EUR/GBP has edged down nearer to the 87p threshold

All rates quoted are indicative market rates.

Manufacturing PMI stayed in expansion mode but fell to 51.6 in August. The services PMI eased further to 50.6 in August, consistent with a slower pace of growth. The core retail sales rose by 1.3% in the three months to July. Housing commencements 12 month running total back below 39k in August. CPI inflation rate rose to 2.0% in August and HICP rate increased to 1.9% also.  

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%.