- Australian Dollar dives on political woes
- US Dollar fights back
- Eurozone data in focus today
By Jonathan Russel
Sterling fell as the UK government starts the process of advising people, businesses, and other affected groups about how to plan for the possibility of leaving the EU without a deal. Ministers say publication of the first batch of documents will tackle what they call "hair-raising scare stories" about a no-deal Brexit. They say reaching a deal with the EU is the "overriding priority" but "we must be ready to consider the alternative".
Australian Dollar dives on political woes
The Australian Dollar fell as political turmoil in Australia takes the headlines from the US today. However, Australia could have the seventh Prime Minister in a decade in a matter of weeks, or even days, after several senior ministers resigned, putting Australian Prime Minister Malcolm Turnbull's leadership in deep jeopardy. The Australian Dollar continues to fall, despite upbeat economic data, which would suggest that once again, we are seeing politics, rather than economics and yield differentials, driving currency.
US Dollar fights back
The US Dollar pulled back some of its recent losses as the minutes of the July-August Federal Open Market Committee (FOMC) revealed nothing that the markets didn’t already know. The Federal Reserve is going to raise the Federal Fund Rate again in September, by 25bps to 2.00-2.25%. The minutes noted that “...many participants suggested that if incoming data continued to support their current economic outlook, it would likely soon be appropriate to take another step in removing policy accommodation.”
Eurozone data in focus today
Eurozone events are the main focuses today, including Purchasing Managers’ Indices (PMIs) and the European Central Bank (ECB) accounts.
What else to watch today?
The UK will release the Confederation of British Industry (CBI) reported sales data. Later in the day, the US will release Jobless Claims, House Price Index, and their own PMIs.