🌍 Focus at the Start of the Week: Flurry of Policymaker Speeches Brings Pressure for Dollar Adjustment
Market Overview
The FX market opened the week on a relatively calm note, with few economic data releases scheduled. Key items include:
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Turkey Consumer Confidence Index (September)
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Hong Kong CPI (August)
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Canada Industrial Product Prices (August)
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Eurozone Consumer Confidence (flash, September)
None of these are expected to significantly impact the global dollar trend.
Wave of Policymaker Speeches
Today will see a string of appearances by central bank officials from the UK, US, and Eurozone:
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ECB: Bank of Spain Governor Escribá, Bundesbank President Nagel, Chief Economist Lane
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BOE: Chief Economist Pill, Governor Bailey
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FRB: NY Fed President Williams, St. Louis Fed President Musalem, Fed Governor Millan, Richmond Fed President Barkin, Cleveland Fed President Hummack
At last week’s FOMC, a 25bp rate cut was decided, and projections showed two further cuts expected by year-end. Markets are already pricing in a “sequential rate cut scenario,” but upcoming speeches could either reinforce or challenge that outlook.
FX Moves (London Early Session)
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USD/JPY: fell to 147.82
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EUR/USD: climbed from 1.1726 to 1.1769
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GBP/USD: rebounded from 1.3453 to 1.3503
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US 10-year Treasury yield: declined to the 4.12% range
The strong dollar trend seen in recent weeks is undergoing correction, with early London trading leaning toward dollar weakness.
Summary
The start of the week is set to be driven by policymaker comments. With the post-FOMC dollar rally showing signs of fatigue, speeches from Fed, ECB, and BOE officials will be key in shaping the next direction for the dollar.
