Dear Reader,

Today's overview of economic news and market action

• Somewhat of a positive tone to investor sentiment yesterday
• Raft of US macro updates surprised to the upside
• However, no noticeable impact on the dollar
• Slightly softer tone to sterling over the past 24 hours
• GBP/USD back below $1.32, EUR/GBP at midpoint of 84-85p
• Ahead today, focus is very much on Fed meeting outcome
• Entails event risk for the dollar

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.