Euro falls to fresh lows on the dayEurozone September preliminary CPI +1.8% vs +1.8% y/y expectedUK September final manufacturing PMI 51.5 vs. 51.5 prelimECB’s Rehn: The scale is tipping towards a rate cut in OctoberUS, China reportedly set to hold talks on trade and economic tiesECB’s Rehn: Direction of monetary policy is clearEurozone September final manufacturing PMI 45.0 vs 44.8 prelimGermany September final manufacturing PMI 40.6 vs 40.3 prelimFrance September final manufacturing PMI 44.6 vs 44.0 prelimItaly September manufacturing PMI 48.3 vs. 49.0 expectedJapan prime minister Ishiba unveils new Cabinet membersSwitzerland September manufacturing PMI 49.9 vs 48.0 expectedSpain September manufacturing PMI 53.0 vs 50.2 expectedEuropean equities a little mixed at the open todayDeutsche see ECB cutting rates in October with potential for a 50 bps move in DecemberWhat are the main events for today?Eurostoxx futures +0.2% in early European tradingFX option expiries for 1 October 10am New York cutJapan top FX diplomat says yen shorts that had been built up until July have been unwoundEurozone inflation in focus in the session aheadThe dollar long conClose but no cigar again for EUR/USD buyers
Markets:
USD leads, NZD lags on the dayEuropean equities higher;
S&P 500 futures down 0.07%US 10-year yields down 4 bps to
3.741% Gold
up 0.52% to $2,647WTI
crude down 0.70% to $67.71Bitcoin
up 0.69% to $63,747
We had a
relatively quiet session in terms of fresh data releases. The main highlight was the
Eurozone Flash CPI report, and the data came out in line with estimates. The
market has already fully priced in a back-to-back 25 bps cut in October and that’s
also something ECB members recently have been touting to.
In the
markets, the US Dollar added to the gains following Fed Chair Powell’s comments
yesterday with EUR/USD being the most notable mover. Another
notable mover this morning has been crude oil as it sold off to a new weekly
low before erasing almost the entire drop. There was no catalyst for the
move though.
The focus
will now switch to the US data in the American session with the US ISM Manufacturing
PMI being the main highlight. We will also get the Canadian PMI and the US Job
Openings data.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
