Market Overview:
• European inflation came in at 0.1% for the second quarter of 2023 revised lower than the initial 0.3% following a rise of 0.1% in the previous quarter.
• The Bank of Canada left rates unchanged overnight at 5.0%, the Bank of Canada is expected to hold through to year end.
• Poland’s central bank has cut interest rates from 6.75% to 6.0% vs 0.25% expected.
• Bank of England’s Bailey is tipping for reasonable falls to inflation as the labour market continues to ease.
• Chinese August trade data -8.8% y/y vs expected -9.2%as China industry struggles.
• Chinese “Purchasing Managers Index” PMI prints well down at 51.8 vs 53.6 forecast – 54.1 previous.
• Goldman Sachs is predicting rate cuts for the Federal Reserve starting second quarter 2024. However, the chances of a hike at the Sep 21 meeting are now at 50/50.
• The US Dollar (USD) has been the strongest currency this week with Australian Dollar (AUD) the worst performing currency.