ECB meeting is on the agenda. Will the EUR get weaker?
Evergreen buck inches down
On Monday, the evergreen buck slips in Europe, although holding on to most of the profits made during Friday’s huge risk-off movement in global financial markets.
The weekend might have provided financial markets with the chance to decelerate and reflect on Friday’s events, although they have started in a negative mood once again. Additionally, bond yields and stock markets have gone down from Japan to Australia and Hong Kong because investors zero in on how 10-year Treasury gains dived below 3-month rates on Friday.
Besides this, volatility among developed market currencies kept to their limits. Eventually, the common currency demonstrated an outcome of $1.1309, diving by about 0.1%, while the UK pound showed $1.3186, decreasing a bit from overnight levels.
Gauging the US currency’s purchasing value versus its primary peers the USD index hit 96.097 - a level above it was before the Fed’s policy announcements the previous week.
As for Turkey’s lira, this currency was also demonstrating a mild rebound after its worst day since the previous year’s currency downtime, provoked by a dive in the major bank’s foreign exchange reserves and also made worse by President Recep Tayyip Erdogan’s rebuke of US leader’s call for international recognition of Israel’s control over the Golan Heights in Syria. As a matter of fact, the Turkish lira hit 5.6515 versus the evergreen buck, having dived from 5.8300 on Friday.
The first test of market sentiment of the week is due nearly instantly, as Germany’s Ifo business climate index is going to either corroborate the previous week’s shocking manufacturing poll from IHS Markit or providing some reassurance that things aren’t so bad. Evidently, the headline index is anticipated to rally mildly from its four-year minimum of 98.5 to 98.7 last month.
The news that opposition lawmakers plan to stop Boris Johnson to leave the European Union without a deal increased the political uncertainties in the UK.
The level of non-farm payrolls (NFP), also known as non-farm employment change will be published on September 6, at 15:30 MT time.
Pay attention to the FOMC meeting, where the rate cut is expected. Also, it is recommended to keep an eye on the oil prices, updates on trade talks between the USD and China and, of course, Brexit.
The retail sales for the US in focus today
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.