Dear Reader,

Today's overview of economic news and market action

• Overnight, the Fed cut rates by 50bps to 4.75-5.00% …
• The updated interest rate dot plot indicates further easing can be expected …
• However, at the press conference, Chair Powell was somewhat hawkish in his remarks …
• The dollar initially softened on the Fed decision but recouped its later on …
• Sees EUR/USD open this morning in the lower half of $1.11-1.12 …
• GBP/USD is up above the $1.32 threshold …
• EUR/GBP is back near to 84p …
• Today, the BoE is expected to leave policy on hold …

All rates quoted are indicative market rates.

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.