Turning positive

Today’s news headlines:

‘Germany expects 2020 contraction won’t be as deep as feared’. In today’s updated forecasts, the German Economy Minister will predict that the economic fallout from the coronavirus pandemic will not be as bad as previously expected. Activity in Europe’s largest economy has rebounded well after the second-quarter collapse, and German companies are turning more optimistic that the recovery will continue. (Bloomberg)

‘Domestic demand drives China's post-pandemic recovery’. China’s service sector activity posted a sharp rise for the month of August in a sign of improved domestic demand while the economic recovery continues. The country’s GDP returned to growth in the second quarter, but consumer spending has continued to pose a problem with retail sales declining in July for the seventh straight month. Meanwhile, many of China’s consumers are saving more, with household deposits rising to a far greater level when compared to a year ago. (Financial Times)

Today's events, rates, and data 

  • The wave of Dollar selling continued over the long bank holiday weekend in the UK as the Greenback fell to multi-year lows against most majors. This followed the Federal Reserve’s announcement of a new interest-rate policy framework that might keep rates lower than in other countries. 

Today's events

China Caixin Manufacturing PMI: 53.1 vs 52.8 previously
Australia Cash Rate: 0.25% vs 0.25% previously
Eurozone Final Manufacturing PMI: 9.00am
UK Final Manufacturing PMI: 9.30am
Canada Manufacturing PMI: 2.30pm
US ISM Manufacturing PMI: 3.00pm

Interbank rates:

GBP/USD: 1.3405
GBP/EUR: 1.1190
EUR/USD: 1.1975
USD/CAD: 1.3005