- Economic data was thin on the ground yesterday, however with Trade Wars, the threat of a global slowdown and something called Brexit going on there was still plenty of scope for movement in FX markets.
- One very interesting development on the Brexit front yesterday was a Scottish Court ruling that Boris Johnson’s proroguing of Parliament was unlawful. In agreement with the 75 MP’s who brought the challenge to the courts, Judges ruled that the PM’s decision was illegal and contravened the UK’s unwritten constitution, as it was clearly intended to suppress parliamentary debate and action on Brexit.
- Sterling pairs traded fairly neutral on the whole, however did suffer a notable loss of -0.28% against the US Dollar on the day, closing at 1.2317.
- Similarly the Euro fell by -0.33% against the US Dollar, closing at 1.1007.
- US PPI m/m 0.1% (0.00% Exp)
- US Final Wholesale Inventories m/m 0.2% as expected.
- According to Reuters sources, the ECB will today reveal growth projections for the Eurozone of barely above 1% GDP for 2019 and 2020.
- German Chancellor Merkel still believes there’s every chance an orderly Brexit could be achieved and said the German Government would do all it can to make that happen. Merkel also added that Germany is prepared for a no-deal exit.
- Whilst political parties in Canada have been campaigning throughout the Summer, PM Justin Trudeau has now requested Parliament be dissolved to mark the official start of formal campaigns to be concluded on the 21st October with an election.
- Japan Core Machinery Orders m/m -6.6% (-9.0% Exp)
- Japan PPI y/y -0.9% (-0.8% Exp)
- German Final CPI m/m -0.2% as expected
- French Final CPI m/m 0.5% as expected
- The European Central Bank will be firmly in focus today. Their rate decision and statement is due at 12.45pm, followed by a press conference from 1.30pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|10.00||EUR||Industrial Production m/m||-0.1%||-1.6%|
|12.45||EUR||ECB Main Financing Rate||0.00%||0.00%|
|12.45||EUR||ECB Monetary Policy Statement|
|13.30||EUR||ECB Press Conference|