The dollar bounce continues but may be running out of steam; what started as a risk-off move has morphed into something more; the House passed e a stopgap bill by a 359-57 vote
There are several Fed speakers today; Chicago Fed President Evans raised eyebrows yesterday by saying the Fed could hike rates before average inflation of 2% is reached
US Markit flash PMI readings for September will be reported; Canada Parliament reopens today with the Trudeau government presenting its new fiscal agenda
Eurozone and UK PMI readings came in weak; Czech Republic is expected to keep policy steady
Japan and Australia data came in weak; RBNZ delivered a dovish hold; Malaysian markets are being hit by rising political instability; Thailand kept rates steady at 0.50%, as expectedContinue reading “Dollar Bounce May Be Running Out of Steam”
The dollar remains firm on continued safe haven flows but we still view this situation as temporary
Fed Chair Powell appears before the House Financial Services Panel with Treasury Secretary Mnuchin; the text of Powell’s testimony was released already
House Democrats plan to vote on a stopgap bill today; Fed manufacturing surveys for September will continue to roll out; Brazil COPOM minutes will be released
UK CBI September industrial trends survey came in weak; BOE Governor Bailey reiterated the discussion on negative rates but confirmed that implementation is nowhere in sight; new restrictive measures are trickling out in the UK
Markets are starting the week in risk-off mode; the dollar is firm on some safe haven flows but this is likely to prove temporary
US politics is coming in to focus as the election nears; we fear that the likely horse-trading and arm-twisting will take away any residual desire to get another stimulus package done
The trend towards more restrictive measures continues with London in focus; between the virus numbers and Brexit risks, sterling remains under pressure
The dollar has gotten some limited traction despite the dovish FOMC decision; the FOMC delivered no surprises
We are seeing some more movement on fiscal stimulus; August retail sales disappointed yesterday
Fed manufacturing surveys for September will continue to roll out; weekly jobless claims will be reported; Brazil left rates unchanged at 2.0% but introduced some additional dovish guidance
BOE is expected to deliver a dovish hold; UK government reached a compromise with rebel Tory MPs by giving them a major concession; ECB gave regional lenders more regulatory relief
The OECD updated its world economic forecasts; the dollar remains soft ahead of the FOMC decision
We expect the FOMC to deliver a dovish hold; the dollar tends to weaken on FOMC decision days
Ahead of the FOMC decision, we get August retail sales; we may be seeing some movement in potential fiscal stimulus; Judy Shelton lacks the votes right now to be confirmed
Canada reports August CPI; Brazil is expected to remain on hold; the rand continues to appreciate from a rare bit of positive political news
The FOMC begins its two-day meeting today; Fed manufacturing surveys for September will start to roll out; Canada reports July manufacturing sales and August existing home sales
UK Internal Market Bill was approved in its second reading in Parliament yesterday, as expected; UK data today was a mixed bag
Israel reports August CPI; Poland is expected to remain on hold
Downward pressure on the dollar has resumed; stimulus talks are going nowhere fast
Weekly jobless claims yesterday were worrisome; US 30-year auction went slightly better than the 10-year did
Main US data report today is August CPI; August budget statement today will be of interest
ECB delivered no surprises yesterday; the strong euro is not yet a concern. Or is it?
EU-UK tensions remain high; UK economy staged a solid bounce in July, but we see tougher times ahead
There are mixed signals about a consumption tax hike in Japan; Japan and the UK have agreed in principle to a free trade agreement; China’s credit figures for August indicate that the recovery is likely to continue at a strong paceContinue reading “Dollar Weakens Post-ECB”
