ECB’s Muller: An October cut isn’t totally excludedThe central bank bonanza wraps up with the SNB later this weekGermany September Ifo business climate index 85.4 vs 86.0 expectedBOJ governor Ueda says unwinding of speculative yen positions has likely run its courseEuropean equities open higher as the positive mood keeps upWhat are the main events for today?BOE’s Bailey: Inflation has come down a long wayBOJ governor Ueda: Global markets remain somewhat unstableRBA’s Bullock: We are prepared to respond in either direction depending on the dataEurostoxx futures +0.6% in early European tradingRBA’s Bullock: Rates are to remain on hold for the time beingBOJ governor Ueda says must conduct monetary policy in timely, appropriate fashionAUD/USD continues to set its sight on the December high as RBA reiterates hawkish stanceRBA leaves cash rate unchanged at 4.35%, as expectedHeads up: RBA monetary policy decision set for the bottom of the hourChinese yuan gains alongside more positive mood in domestic markets
Markets:
NZD leads, JPY lags on the dayEuropean equities higher;
S&P 500 futures up 0.03%US 10-year yields up 4 bps to
3.791% Gold
up 0.08% to $2,630WTI
crude up 2.49% to $72.13Bitcoin
up 0.28% to $63,517
It’s been a
quiet session in terms of data releases with just the German IFO on the agenda.
The data was a touch softer than expected but no big deal. We got ECB’s Muller opening
the door for a cut in October with the market now pricing in a 95% probability
of a 25 bps move.
In the
markets, the surprising announcement of a big stimulus from Chinese officials
is still reverberating with commodities like copper and crude oil up notably on
the day. Treasury yields are also up as the market is now focusing on global
growth.
The focus
will now switch to the US consumer confidence and the labour market details in
the report. Looking forward, a pick-up in the US data in the next weeks and months
could see long term Treasury yields rising further.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
