There were some positive news stateside with GDP numbers (third reading) for Q2 coming in higher than expected and jobless claims coming in below original projections.
The good news led to initial USD gains, however when US equities began trading, the feel-good factor buoyed stocks causing a weaker USD and pushing GBPUSD and EURUSD close to the highs observed on Wednesday.
*Daily move - against G10 rates at 7:30am, 27.09.24
** Indicative rates - interbank rates at 7:30am, 27.09.24
So far this morning, we are seeing a weaker JPY as Japan's Prime Minister election went to a run-off vote. Japan’s new PM is set to be either Sanai Takaichi or Shigeru Ishiba. The country is edging closer to electing its first female PM (Takaichi) - a known advocate of monetary easing. This dip in JPY is driving a surge into USD, resulting in both GBPUSD and EURUSD opening slightly below yesterday's peaks.
French CPI numbers have come in lower than expected this morning, strengthening wagers that the ECB will have to act in October and cut rates again.
German CPI number are out on Monday and eurozone-wide numbers on Tuesday. EUR is lower across the board.
Today's focus falls on the core PCE inflation number from the US. For USD to end the week on a high note, we need to see a higher than expected core PCE inflation figure to ease off bets for another 50bps cut by the Fed in November.
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