Sterling hits six-week high after BoE's decisions
Sterling rose to August 2 highs against the dollar, following a spate of data from Britain and the US, and after Bank of England's policy decisions.
As of 04:27 GMT, GBP/USD rose 0.44% to 1.3102, with an intraday low at 1.3026, and a six-week trough at 1.3124.
Bank of England's policymakers voted to hold the official bank rate at 0.75%, and the assets purchase program at £435 billion as expected by analysts.
Otherwise, UK Brexit minister Dominic Raan threatened Britain won't pay the Brexir fee if the EU failed to agree to a mutual deal.
The fee is estimated at £39 billion, while the European Commission spokesman said the EU won't reconsider any of the issues already agreed upon, including the fee.
US Inflation, Labor Data
Earlier US data showed consumer prices rose 0.2% m/m in August, same as July, while core prices rose 0.1%, slowing down from 0.2%.
On a yearly basis, consumer prices rose 2.7%, slowing down from 2.9%, while core prices slowed down as well to 2.2% from 2.4%.
Unemployment claims fell a thousand in the week ending September 8 to 204 thousand, while continuing claims fell 15 thousand to 1.696 million.
Federal Reserve Governor Randal Quarles will testify on the implementation of the economic growth, regulatory relief, and the Consumer Protection Act before the Senate Banking Committee, in Washington DC, while Federal Reserve Bank of Atlanta President Raphael Bostic is due to speak about the economic outlook and monetary policy at the Mississippi Council of Economic Education later today.
Euro rises to two-week high after ECB
Euro rose in American trade away from August 21 lows against the greenback, following earlier data from the euro zone and the US, while the European Central Bank just wrapped up its policy meeting.
As of 03:59 GMT, EUR/USD rose 0.42% to 1.1675, with an intraday low at 1.1609, and the highest since August 30 at 1.1701.
Earlier German data showed consumer prices rose 0.1% as expected in August, down from 0.3%, while French consumer prices rose 0.5% as expected as well, improving from a 0.1% dip in July.
The European Central Bank voted today to hold the main refinancing rate at zero, the deposit rate at minus 0.40%, and the quantitative easing program at €15 billion a month until December.
At the post-meeting press conference, ECB President Mario Draghi expected interest rates to remain unchanged until summer 2019 or longer if needed.
He also maintained inflation estimates until 2020 and cut growth forecasts for this year and the next, noting that the risks of the trade dispute with the US are becoming more pronounced.
US Inflation, Labor Data
Earlier US data showed consumer prices rose 0.2% m/m in August, same as July, while core prices rose 0.1%, slowing down from 0.2%.
On a yearly basis, consumer prices rose 2.7%, slowing down from 2.9%, while core prices slowed down as well to 2.2% from 2.4%.
Unemployment claims fell a thousand in the week ending September 8 to 204 thousand, while continuing claims fell 15 thousand to 1.696 million.
Federal Reserve Governor Randal Quarles testified today on the implementation of the economic growth, regulatory relief, and the Consumer Protection Act before the Senate Banking Committee, in Washington DC, while Federal Reserve Bank of Atlanta President Raphael Bostic spoke about the economic outlook and monetary policy at the Mississippi Council of Economic Education.
EIA: US natural gas inventory build slightly above estimates
The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 69 billion cubic feet in the week ending September 7, adding to the 63 billion increase in the previous reading, while analysts expected a 65 billion build.
Total stocks are now up to 2.636 trillion cubic feet from 2.567 trillion in the week ending August 31, which is below the total of the same period in 2017 at 3.298 trillion, while also below the five-year average at 3.232 trillion.
Wall Street opens higher with tech leading the charge
US stock indices opened the fourth session of the week higher, with Dow Jones piercing 26,000, Standard and Poor's 500 passing through 2,900, and NASDAQ breaching 8,000 as the tech sector led the charge while trade concerns calmed down.
Apple led the charge higher with a 1% profit after announcing a new member in the iPhone family and releasing the fourth edition of the Apple Watch focused on health aspects.
On another note, China's foreign ministry welcomed the prospect of US officials arriving in Beijing to discuss the trade issues, in turn buoying market sentiment.
US Inflation, Labor Data
Earlier US data showed consumer prices rose 0.2% m/m in August, same as July, while core prices rose 0.1%, slowing down from 0.2%.
On a yearly basis, consumer prices rose 2.7%, slowing down from 2.9%, while core prices slowed down as well to 2.2% from 2.4%.
Unemployment claims fell a thousand in the week ending September 8 to 204 thousand, while continuing claims fell 15 thousand to 1.696 million.
Federal Reserve Governor Randal Quarles will testify on the implementation of the economic growth, regulatory relief, and the Consumer Protection Act before the Senate Banking Committee, in Washington DC, while Federal Reserve Bank of Atlanta President Raphael Bostic is due to speak about the economic outlook and monetary policy at the Mississippi Council of Economic Education later today.
Stock Performance
As of 02:21 GMT, Standard and Poor's 500 rose 0.42%, or 12.05 points to 2,900.97, while Dow Jones added 0.49%, or 126.46 points to 26,125.38.
Tech-heavy NASDAQ slid 0.65%, or 51.58 points to 8,005.81.