Headlines:
- Dollar stays in retreat mode so far on the session
- Equities pull higher in European morning trade
- What to expect from the ECB later today and how will the euro react?
- What are the key dates to watch before the next FOMC meeting in September?
- Germany August GfK consumer confidence -24.4 vs -24.7 expected
- UK July CBI retailing reported sales -25 vs -9 prior
- China tries to play down 'malicious' hype on Qin Gang's removal from minister post
Markets:
- NZD leads, USD lags on the day
- European equities higher; S&P 500 futures up 0.6%
- US 10-year yields up 1.8 bps to 3.868%
- Gold up 0.2% to $1,976.47
- WTI crude up 0.9% to $79.51
- Bitcoin down 0.3% to $29,481
The dollar was mildly lower in Asia but extended its post-FOMC losses in Europe today. Powell kept the door open for a September move but was not adamant about it and markets took that as a message that perhaps we have already seen a peak in interest rates in the US.
EUR/USD moved up from 1.1100 to 1.1150 and is holding just below that while GBP/USD pulled higher from 1.2940 to a high of 1.2995 but is now just marginally higher at 1.2960. The euro will be in focus with the ECB coming up next and the risks might be skewed to the downside for the single currency.
Anyway, the dollar is lower across the board with USD/CHF also dropping back below 0.8600 and AUD/USD held its early gains at around 0.8600 - up 0.6% since Asia amid a stronger Chinese yuan and better risk sentiment as well.
Equities were solid throughout with European equities rebounding from yesterday's setback, while tech shares are driving US futures higher. Nasdaq futures are up 1.2% currently and that tees up a more positive mood ahead of Wall Street later. The Dow looks poised for a record streak, after matching 13 straight days of gains already - first since 1987.
It's now over to Lagarde & co. to deliver the next part of the central bank bonanza this week, before the BOJ wraps things up tomorrow.
