ECB meeting is on the agenda. Will the EUR get weaker?
Evergreen buck inches down to 2-1/2 week minimum
On Monday, the evergreen buck slumped to a two-and-a-half week minimum because market participants pulled back ahead of the Fed’s meeting a bit later in the week.
The major US financial institution is anticipated to keep rates intact at its latest policy gathering on Wednesday, although its update on rate estimates is going to be closely watched.
Measuring the purchasing power of the key US currency versus its primary peers the USD index went down by 0.1% ending up with 95.958.
Recent downbeat economic data could result in loosening monetary policy. The major US bank has told it’s going to be patient and review data before lifting rates in the nearer future.
Market participants currently expect no interest rate lifts in 2019, as follows from Investing.com’s Fed Rate Monitor Tool.
Wednesday’s gathering appears to be the start of major bank decisions, with the Bank of England as well as Swiss National Bank anticipated to meet on Thursday. As for Russia’s key financial institution, it will meet on Friday.
Versus the safe-haven Japanese yen, the evergreen buck inched up. As a matter of fact, the currency pair USD/JPY rallied by about 0.1% coming up with 111.57.
As for the UK pound, it went down due to the fact British Prime Minister Theresa May is struggling to push her Brexit bill through the country’s parliament for the third time, even as experts expect her to fail once again. Well, if she fails to push it through once again, she’ll be bound to ask the EU to have the March 29 deadline extended. The currency pair GBP/USD went down by 0.4% ending up with 1.3242.
The currency pair AUD/USD jumped by 0.2% being worth 0.7093. The currency pair NZD/USD surged by 0.2% showing 0.6855. As for the Canadian dollar surged. The currency pair USD/CAD gained 0.01% hitting 1.3330. The currency pair EUR/USD managed to jump by 0.2% trading at 1.1341.
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.