The yen is down on the day as traders are fading the jump following Shigeru Ishiba's win in the LDP leadership race last week. USD/JPY is up another 0.5% to 144.34, looking to potentially challenge the 145.00 mark on the daily chart again. The dollar rebound yesterday also helped, backed by Fed chair Powell's remarks.
Besides that, other major currencies aren't doing too much as the bigger focus starts to shift towards US data again. As a reminder, it is NFP week and that means we'll be getting US labour market data in the run up to the big one on Friday.
For today, we will have the ISM manufacturing PMI and JOLTS job openings. But before we get to that, Eurozone inflation will be the main focus in the session ahead.
However, with traders already fully pricing in a 25 bps rate cut by the ECB for later this month, it's hard to see this changing that unless we do get a major upside surprise. But so far from the individual country data since last week, there isn't anything too surprising. At least not on the inflation front.
Headline annual inflation is expected to fall again to 1.8% while core annual inflation is also expected to ease slightly to 2.7%.
Barring any surprises, it will be more of a session where traders are looking to get a feel of things in the new month.
EUR/USD is back down from testing 1.1200 again while AUD/USD continues to stay poised as it trades above 0.6900 at its highest since February 2023. On the latter, China sentiment has been key to that but just be aware that Chinese markets will be closed until next week starting today.
0715 GMT - Spain September manufacturing PMI
0730 GMT - Switzerland September manufacturing PMI
0745 GMT - Italy September manufacturing PMI
0750 GMT - France September final manufacturing PMI
0755 GMT - Germany September final manufacturing PMI
0800 GMT - Eurozone September final manufacturing PMI
0830 GMT - UK September final manufacturing PMI
0900 GMT - Eurozone September preliminary CPI figures
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.
