OctaFX | OctaFX Forex Broker
Open trading account

USD: Momentum lost amid lacklustre data – Swissquote

FXStreet (Delhi) – Arnaud Masset, Market Analyst at Swissquote, notes that the US currency is loosing momentum against majors after the first batch of economic data from the US was roughly in line with market expectations but traders will therefore have to wait for Friday’s NFPs to have a little more clarity on the timing of the first rate hike by the Federal Reserve.

Key Quotes

“Personal income (s.a.) edged down to 0.3%m/m in August, lower than median estimates of 0.4% and the revised increase of 0.5% in July. Personal spending rose 0.4%m/m, beating an anticipated 0.3%.”

“On the inflation front, core personal consumption expenditure improved slightly in August, easing some of the Fed’s worries. The gauge moved back to 1.3%y/y from 1.2% a month earlier. However, this is not good enough in our opinion as the gauge is still far below the 2% threshold.”

“Finally, pending home sales contracted -1.4%m/m in August versus 0.4% median forecast and 0.5% in July, while the Dallas Fed manufacturing outlook stayed in negative territory, printing at -9.5 in August, from -15.8 the previous month.”

“All in all, the data failed to provide support to the greenback as Fed’s Dudley recalled that the US central bank’s policy remains data dependent.”

CNY and CNH gap is shrinking – BBH

Research Team at BBH, note that in the overnight session, the CNH once again outperformed the CNY and is closing the gap that opened between the two currencies since the August devaluation.
Read more Previous

EUR/USD stays above 1.12 after US data

The bear grip on the EUR/USD weakened somewhat, ensuring the pair recovered to trade above 1.12 handle after the data in the US showed the US goods trade deficit rose sharply in August.
Read more Next
Start livechat