Market Overview
- Bank holidays in Japan and China represent added volatility in thin trading markets.
- US Dollar (USD) is under pressure to start the week while risk currencies remain well supported.
- US Federal Reserve cash rate this week could surprise with a 50-point cut from 5.50%. 3 senators are calling for 75 points.
- Chinese growth in August remains weak with forecasting at 4.8% in 2024 looking unlikely.
- The Bank of Japan meet this week with no change to interest rates expected.
- Post the ECB cutting rates last week the ECB should be cutting again in October as inflation comes down.
- The Japanese Yen (JPY) has been the best performing currency this past week while the Canadian Dollar (CAD) has been the worst performer.