FX Update: Ugly flash EU PMI’s pressure EUR
EURUSD languishing below the pivotal 1.1000 area and the greenback is generally bid after September flash PMI’s in Europe suggest a bad situation is getting worse, led by German manufacturing. The risk remains of a broad USD break out to the upside until the Powell Fed shows signs that it is getting ahead of the policy curve, something it has proven reluctant to do.
Chart of the Week: US credit impulse
Our leading indicator US credit impulse is running at its highest level since the end of 2017, at 1.8% of GDP. In our view, the strong flow of new credit in the economy largely explains recent positive US data and may drive away the specter of recession, at least in the short term.
Macro Monday Week 38: From Spiking Oil Prices to FOMC Decisions...
Light week ahead, key focus will be on Flash PMIs, RBNZ as well as rate decisions from the likes of the central bank of Mexico. Markets will still be busy digesting the hawkish cut from the Fed from last wk. Look for Fed Speak from Dovish Bullard & Non-Dovish George.