Daily Market Update: Equity Markets Continue to Remain Centre of Attention
The US dollar was weaker v the euro, Japanese yen and Swiss franc but was up against the commodity currencies such as the Canadian and Australian dollar. Cable (GBP/USD) moved very little on the day.
Yesterday afternoon saw EURUSD touch the 100 day moving average at 1.1145 but rallied before 5.00pm touching 1.1240. The New York afternoon session moved sideways but the pair closed near the highs of the day. The USDJPY moved lower on weaker data and a weaker stock market but it too stalled in the New York session.
Reports coming out of China yesterday showed that industrial profits suffered their biggest drop since 2011. During August, profits of industrial companies dropped 8.8% from a year earlier with rising costs and falling product prices being some of the main factors.
We also had news from India where the Central Bank lowered interest rates more than expected to help bolster the economy as China’s slowdown threatens global growth. Governor Raghuram Rajan cut the rate to 6.75% from 7.25%, the Reserve Bank of India said this morning, the lowest since May 2011.
Data wise we have plenty coming up today including Spanish CPI and all the German regional inflation readings ahead of the provisional German CPI later. Eurozone consumer confidence figures are also released.