United States of America

USD is strengthening against GBP and has ambiguous dynamics against EUR and JPY.

Investors focus on the latest comments from US Fed officials. Yesterday, Federal Reserve Bank of San Francisco President Mary Daly noted that monetary policy remained too tight, and the regulator will continue to ease it gradually. The official added that if inflation continues to weaken as expected, then one or two more interest rate adjustments before the end of the year would be appropriate but did not name the pace of further changes or their endpoint. Today, Atlanta Fed President Raphael Bostic said that only one borrowing cost reduction by 25 basis points is possible this year. In general, against September macroeconomic statistics, which reflected a strengthening labor market and a less significant inflation weakening than expected, regulator officials are taking a more cautious position.

Eurozone

EUR is strengthening against JPY and GBP but has ambiguous dynamics against USD.

Investors are awaiting the results of the European Central Bank (ECB) meeting on Thursday at 14:15 (GMT 2). Analysts expect the regulator to continue the monetary policy easing, and the key rate will decrease from 3.65% to 3.40%, the deposit rate from 3.50% to 3.25%, and the marginal rate from 3.90% to 3.65%. Department officials acknowledged a significant decline in inflation and the need for new measures to support the Eurozone economy. Experts expect two more adjustments to the cost of borrowing by 25 basis points before the end of the year, in October and December.

United Kingdom

GBP is weakening against EUR, JPY, and USD.

The September consumer price index fell from 0.3% to 0.0% MoM against the expected 0.1% and from 2.2% to 1.7% instead of 1.9% YoY, while the core indicator fell from 0.4% to 0.1% MoM against 0.3% and from 3.6% to 3.2% YoY instead of 3.4%, respectively. Overall, inflation grew more slowly than expected and is below the Bank of England’s 2.0% target, raising the likelihood of interest rate cuts soon and putting pressure on the pound. Most experts expect borrowing costs to fall twice this year by 25 basis points, and policymakers will remain cautious as consumer prices in the services sector rise by 4.9%.

Japan

JPY is strengthening against GBP, weakening against EUR, and has ambiguous dynamics against USD.

The August core machinery orders fell 1.9% versus the forecast of –0.1% MoM and 3.4% YoY versus 3.6%, confirming weakness in the industrial sector and reflecting the likelihood of a decline in investment in the national economy. In addition, Bank of Japan (BOJ) Governor Seiji Adachi said the regulator should continue to tighten monetary policy but at a very moderate pace, avoiding untimely interest rate hikes, and warned that further yen appreciation and slowing global demand could put pressure on inflation and wage growth in the country.

Australia

AUD is weakening against JPY, EUR, and USD but has ambiguous dynamics against GBP.

On Thursday at 02:30 (GMT 2), the September statistics from the national labor market are due. Experts assume that the unemployment rate will remain at the same level of 4.2% but the employment rate will slow down from 47.5K to 25.2K, putting pressure on the Australian dollar.

Oil

Oil prices are falling, trading against several opposing factors. They are negatively affected by the deterioration of the forecasts for global oil demand from the International Energy Agency (IEA) and OPEC. However, the ongoing tension in the Middle East with the likelihood of a direct conflict between Israel and Iran, as well as the measures to support the national economy announced by the PRC authorities in the amount of up to 6.0T yuan (850.0B dollars) prevent a significant weakening of the quotes. At 22:30 (GMT 2), the American Petroleum Institute (API) will release data on commercial oil reserves. According to forecasts, the figure will increase by 3.200M barrels, putting additional pressure on the asset.