FX News

FX Update: Risk Holding Up

Market Overview

Key Points:
• Non-Farm Payroll (NFP) printed poorly at 187,000 compared to 205,000 putting the US Dollar under pressure.
• The Bank of England (BoE) may need to raise rates again, we see a 70% chance the Central Bank will hike 25 points at their Sep 21 meeting.
• Germany’s economic situation is worsening as they face industrial production declines, energy rises, and a lack of consumer spending.
• The Fed have not ruled out the possibility of cutting rates in 2024
• UK House prices fell 0.3% in July vs 0.0%
• The Euro (EUR) has been the strongest currency in the month of August while the Australian Dollar (AUD) is the worst performer.

Major Announcements last week:
• Chinese July Manufacturing 49.3 vs 48.9 forecast
• RBA maintain cash rate at 4.10%
• NZ Unemployment Rate climbs to 3.6% from 3.4% in June
• Bank of England (BoE) hike 25 points to 5.25%
• Canadian Unemployment remains unchanged at 5.5%
• Non-Farm Payroll prints 187k vs 205k expected

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