Major currencies continue to stay in a rather subdued mood, with there being little change today after the mixed showing yesterday. The main focus is on the Fed decision today, which will kick off a bunch of other major central bank decisions on the week as seen here.
It’s a quiet one ahead of European trading today and things are likely to stay that way barring any surprising headlines. The only item that has the known potential for that later is the UK CPI data, whereby headline inflation is expected to tick a little higher while core inflation is expected to nudge just a touch lower in August.
But with both readings still settling near 7% for now, that is still way too high for the BOE’s liking and will just validate a rate hike for this week surely.
However, if the readings do come in hotter than expected, it will continue to give policymakers a massive headache in pursuing further rate hikes amid a rapidly weakening economy in 2H 2023. As such, the pound and bond yields will be a focus point amid the data.
0600 GMT – UK August CPI figures0900 GMT – Eurozone July construction output1100 GMT – US MBA mortgage applications w.e. 15 September
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
This article was written by Justin Low at www.forexlive.com.
