- Euro falls to fresh lows on the day
- Eurozone September preliminary CPI +1.8% vs +1.8% y/y expected
- UK September final manufacturing PMI 51.5 vs. 51.5 prelim
- ECB's Rehn: The scale is tipping towards a rate cut in October
- US, China reportedly set to hold talks on trade and economic ties
- ECB's Rehn: Direction of monetary policy is clear
- Eurozone September final manufacturing PMI 45.0 vs 44.8 prelim
- Germany September final manufacturing PMI 40.6 vs 40.3 prelim
- France September final manufacturing PMI 44.6 vs 44.0 prelim
- Italy September manufacturing PMI 48.3 vs. 49.0 expected
- Japan prime minister Ishiba unveils new Cabinet members
- Switzerland September manufacturing PMI 49.9 vs 48.0 expected
- Spain September manufacturing PMI 53.0 vs 50.2 expected
- European equities a little mixed at the open today
- Deutsche see ECB cutting rates in October with potential for a 50 bps move in December
- What are the main events for today?
- Eurostoxx futures +0.2% in early European trading
- FX option expiries for 1 October 10am New York cut
- Japan top FX diplomat says yen shorts that had been built up until July have been unwound
- Eurozone inflation in focus in the session ahead
- The dollar long con
- Close but no cigar again for EUR/USD buyers
Markets:
- USD leads, NZD lags on the day
- European equities higher; S&P 500 futures down 0.07%
- US 10-year yields down 4 bps to 3.741%
- Gold up 0.52% to $2,647
- WTI crude down 0.70% to $67.71
- Bitcoin up 0.69% to $63,747
We had a relatively quiet session in terms of fresh data releases. The main highlight was the Eurozone Flash CPI report, and the data came out in line with estimates. The market has already fully priced in a back-to-back 25 bps cut in October and that’s also something ECB members recently have been touting to.
In the markets, the US Dollar added to the gains following Fed Chair Powell’s comments yesterday with EUR/USD being the most notable mover. Another notable mover this morning has been crude oil as it sold off to a new weekly low before erasing almost the entire drop. There was no catalyst for the move though.
The focus will now switch to the US data in the American session with the US ISM Manufacturing PMI being the main highlight. We will also get the Canadian PMI and the US Job Openings data.
