FX MARKETS CONSOLIDATE AHEAD OF JACKSON HOLE SPEECHES FROM YELLEN AND DRAGHI
FX MARKETS POISED FOR KEY SPEECHES
Foreign exchange markets continued to trade in increasingly narrow trading ranges, ahead of key note speeches from Federal Reserve Chair Janet Yellen, and ECB President Mario Draghi.
The U.S dollar index looked poised for a directional breakout, with the EURUSD, USDJPY, GBPUSD and USDCHF major currency pairs all trading close to key technical levels.
INDONESIA CUTS INTEREST RATE
Indonesia's central bank made a surprise 25 basis point interest rate cut this week. Indonesia's board of governors decided to cut the rate from 4.75 per cent to 4.5 per cent.
Central Bank policy makers said cutting the interest rate, would help to strengthen the banking intermediation, and further help the stability of the Indonesian financial system, leading to higher economic growth.
EURGBP UPTREND CONTINUES
The euro spiked to a 10-month trading high against the British pound, moving to the 0.7236 level, as EUROZONE PMI manufacturing data continued to show strong economic growth for the month of August.
The French economy posted a strong 55.8 PMI reading, whilst the German manufacturing PMI reading for August moved to a fresh six-year high, posting 59.4. The EURGBP pair also received a boost from British pound weakness, as Brexit uncertainty continued to weigh on the UK economy.
NEW ZEALAND GROWTH DOWNGRADED
The New Zealand dollar fell sharply this week, touching a two-month low against the U.S dollar, after the New Zealand pre-election fiscal forecast expected weaker economic growth and smaller Budget surpluses in the coming months.
The kiwi declined below the $0.72 cents level against the greenback, for the first time since mid-June. The New Zealand dollar also come under pressure from falling commodity prices, with the NZDUSD pairs 200-week moving average nearing, at 0.7125.