Dear Reader,

 

Today's overview of economic news and market action

  • Last week, the focus was very much on monetary policy …
  • The Fed cut rates by 50bps, bringing the funds target range down to 4.75-5.00% …
  • Meantime, the BoE and the BoJ opted to leave policy on hold, in-line with expectations …
  • On the currency front, the dollar was under some downward pressure last week …
  • At the same time, there was a firmer tone to sterling …
  • As trading gets underway this morning, GBP/USD is above $1.33 …
  • EUR/GBP is changing hands just below 84p …
  • EUR/USD is in the top half of the $1.11-1.12 range …
  • This week, the flash PMIs for September are due …
  • US core-PCE inflation (Aug) and remarks from a plethora of central bank officials will be in focus …
 
Continue Reading
 
Today's Opening FX Rates
 
      % Change Day* End 2023
EUR/USD 1.1166   0.01 1.18
EUR/GBP 0.8383   -0.19 -3.29
GBP/USD 1.3319   0.20 4.64
GBP/EUR 1.1927   0.19 3.40
*versus Previous Day's European Open

All rates quoted are indicative market rates.
 
 
ECB Watch - September 2024
 

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. 
 
Read More
 
Bank of England Watch - September 2024
 

The September meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank leave the Bank rate at 5.00%. This follows a 25bps cut implemented at its previous meeting in early August. The decision to cut in August represented the first rate change from the Bank of England in eight meetings.
 
Read More
 
US Federal Reserve Watch - September 2024
 

The September meeting of the US Federal Reserve Open Market Committee (FOMC) saw the central bank cut interest rates for the first time since 2020. The target range for the Fed funds rate was reduced by 50bps to 4.75-5.00%. It marks the first rate change from the Fed in nine meetings.
 
Read More