New expectations

Today's news headlines: 

‘US withdraws from Afghanistan bringing an end to 20-year war’. Monday marked the end of the US presence in Afghanistan after a 20-year war. The full withdrawal has meant Joe Biden has delivered on his campaign promise to bring an end to the conflict. Around 123,000 civilians were evacuated during the three-week airlift from Kabul airport, which the Taliban took control of shortly after the last American plane left the country. Biden has faced criticism over the handling of the withdrawal by Democrats and Republicans alike, with some suggesting the US surrendered control of Afghanistan. (Financial Times)

‘EU moves to restrict travel from US over rising Covid cases’. Ministers from all 27 member states of the EU are expected to reinstate Coronavirus travel restrictions for US visitors. This follows a review prompted by the accelerating rate of infection in the country. Currently, fully-vaccinated Americans—including those on non-essential visits—are still able to travel to EU member countries with any EU-recognised vaccine. Vaccination levels in the US remain relatively low compared to their European counterparts, with only 52% of the population currently fully vaccinated. (Financial Times)


Today

Markets continued their move higher yesterday following Federal Reserve Chair Jerome Powell’s speech at Jackson Hole last Friday, with the S&P 500 closing 0.43% higher and the Nasdaq gaining 0.90%. The risk-off Dollar move has continued at the start of the week, with Cable trading closer to $1.3800 and EUR/USD trading around $1.1830 this morning.

Events

Japan Unemployment Rate: 2.8% vs 2.9% last month
China Manufacturing PMI: 50.1 vs 50.4 last month
Japan Consumer Confidence: 36.7 vs 37.5 last month
Eurozone CPI Flash estimate y/y: 10:00AM
Canada GDP m/m: 1:30PM
US Chicago PMI: 2:45PM
US CB Consumer Confidence: 3:00PM


Interbank rates:

GBP/USD – 1.3797
GBP/EUR – 1.1664
EUR/USD – 1.1829
USD/CAD – 1.2572

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