
- Taking a weak lead from Wall Street, sentiment remained under pressure following renewed global growth concerns after OECD lowered their forecasts.
- Mixed data from Australia saw construction PMI contract for a sixth month, exports hit 6-month high and retail sales rise just 0.1% on the month. Regardless, AUD and NZD are today’s strongest majors, support by a weaker USD and Trump’s desire to ‘cut a deal’ with China to help markets rally.
- USD and EUR are the weakest majors ahead of today’s ECB meeting. No change of policy is likely although we could see ECB staff lower projections following a run of weak data.
- Volatility remained contained throughout the session, with pairs trading just 20%-60% of their typical daily ranges ahead of the UK open.