- The greenback is muted this morning after rallying yesterday against major peers following US PMI figures beating estimates. For whoever thought the Federal Reserve was done with their campaign, this can be a clear sign that they can still do more if needed.
- All eyes will be on Fed Chair Jerome Powell’s speech later today in Washington, DC and on the GDP data tomorrow, which is set to post an advance. MBA Mortgage Applications and New Home Sales data out today.
- UK PMIs released Tuesday missed expectations and as a result the sterling turned to red, especially as the US posted some better-than-expected data, and its economy continues to develop whereas the rest of the world is stagnating or starting to show cracks on their economic system.
- GBP/USD trades quietly this morning at 1.2163, after falling from near the 1.23 handle yesterday.
- Same story for the common currency, weak PMIs out of Europe yesterday with a 3Q GDP contraction now estimated. The euro is hovering the 1.06 level now, after dropping from near 1.07. ECB’s Lagarde is due to speak later today, and we have ECB policy decision tomorrow.
