The dollar is stronger to start the fourth quarter, Johnson set to reveal revised Brexit plan
Laurence Hayward | October 1, 2019
The dollar continues its strengthening to begin the 4th quarter. The UK pound awaits direction from Boris Johnson’s rumored new Brexit plan. China and Hong are on holiday today and the Australian Central Bank cuts rates. US data today includes September PMI and ISM data.
"With the new day comes new strength and new thoughts."Eleanor Roosevelt
October 1, 2019
EUR/USD 1.0915 GBP/USD 1.2225 USD/CAD 1.3271 AUD/USD 0.6684 USD/JPY 108.16 USD/CNH 7.1510 USD/ILS 3.4826 USD/MXN 19.7789 USD/CHF 0.9978 USD/INR 71.0837
The dollar continues its slow strengthening, helping the Dow rise 96 points yesterday. The attempted impeachment inquiry of President Trump is a key point of focus. Stocks yesterday ended the quarter with all three indices rising.GBP
Sterling attempted a breakout rally against the dollar late in the day Monday before retracing back to its opening levels. Boris Johnson is rumored to be presenting his revised Brexit plan to parliament. One of the most important points will be the Irish backstop which is expected to include customs centers on both sides of the border between Ireland and Northern Ireland. The Nationwide House Price Index fell to +0.2% annually missing the forecast of +0.5%.EUR
The euro is weaker again against the dollar - which is stronger across the board. Inflation for the area features on today’s economic calendar with the core reading expected to slip to 0.9% for September. Manufacturing PMI for the bloc is expected to remain flat at 45.6.CAD
The Canadian dollar is under pressure as Q4 begins. July GDP was flat failing to meet the +0.1 forecast. WTI oil is also helping as it increased 64 cents today to $54.70 a barrel.ASIA/PACIFIC
China and Hong Kong area on holiday today. Japanese confidence number fell as new tax changes start today. In an expected rate cut, The Australian Central Bank cut interest rates a quarter of a percent to 0.75%. In the accompanying statement, the central bank said to expect an extended period of low interest rates. The Aussie dollar weakened on the news.
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