Contact us for a free online quote
Currencies remained in limbo into Thursday’s economic data announcements.
The Federal Reserve dropped their cash rate for the third time in 2019 from 2.0% to 1.75% and downgraded market expectations of further rate cuts for now. Fed officials removed recent rhetoric from June, July and September’s meeting changing- they would “act as appropriate” for something more subtle. The statement said “The committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path”. Eight of the ten officials voted in favour of cutting the rate by 25 points but two disapproved preferring to hold rates unchanged. The Fed statement also noted that business investment and exports remained weak while household spending had increased. In summary Powell’s opening statement sums up the situation well “we believe monetary policy is in a good place, cutting to provide insurance against ongoing risks”- rates could remain steady for some time!?
Chile have cancelled staging November’s APEC meeting in Santiago overnight after protests against inequality turned to violence. They have also cancelled a United Nations climate change conference planned for early December. This dampens any hopes of achieving a result in “phase one” of the trade agreement between China and the US where the two countries were to due to hopefully sign something at the event. We wait now to hear when leaders will meet again. Read more