Dear Reader,

Today's overview of economic news and market action: 

• • It was an uneventful day on markets yesterday …
  • A sparse data calendar likely contributed to the lacklustre price action …
  • Currency-wise, the main FX pairs were tightly range bound …
  • This sees EUR/USD open today in the lower half of $1.17-1.18 once again …
  • GBP/USD is in the bottom half of the $1.34-1.35 corridor …
  • EUR/GBP remains above the 87p threshold …
  • Today, the macro calendar is relatively quiet once more …
  • Negotiations to avoid a US government shutdown will remain in focus …

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%.