Headlines:
- ECB's Villeroy: Current level of interest rates is approriate
- ECB's Wunsch: Maybe we've reached the peak in interest rates
- ECB's Stournaras says should not stop bond buying too early
- ECB's Vasle: The main challenge to our policy is the lack of accompanying fiscal policy
- ECB accounts: Solid majority expressed support for 25 bps rate hike in September
- BOJ's Noguchi: We have no choice but to raise inflation forecast for fiscal year 2023
- BOE's Pill: It is a finely balanced issue if we still have to do more on rates
- UK August monthly GDP +0.2% vs +0.2% m/m expected
- China bars brokerages from taking on new mainland clients for offshore trading - report
- OPEC maintains 2024 oil demand growth forecast
- IEA cuts 2024 global oil demand growth forecast on softer economic outlook
Markets:
- CHF leads, NZD lags on the day
- European equities higher; S&P 500 futures up 0.4%
- US 10-year yields down 3.9 bps to 4.558%
- Gold up 0.5% to $1,883.37
- WTI crude up 1.2% to $84.49
- Bitcoin up 0.4% to $26,821
In the build-up to the US CPI data, there wasn't much to really take away from movement among major currencies. The dollar is keeping steadier overall, staying little changed against the likes of the euro, yen and pound.
EUR/USD is flattish at 1.0617, while USD/JPY and GBP/USD are also both trading flat at 149.15 and 1.2311 respectively on the day.
In other markets, equities are keeping some hopeful optimism ahead of the main event with European indices higher alongside US futures. Meanwhile, bond yields are a tad softer and that is helping to keep the likes of gold underpinned as well.
There were plenty of ECB talk from policymakers but they all had a consistent theme in signaling that they are done with rate hikes. So, that's not really anything new.
As such, all eyes now turn to the US CPI data next. The bond market reaction in the aftermath will be key as broader markets will take clues from that in determining trading sentiment before the weekend comes along.