Banco Central do Brasil (BCB, Brazil’s central bank) left its key rates unchanged at its meeting – benchmark Selic rate at 6.50%, an all time low – for the 4th meeting in a row The real has been heavy (many EMs have been, of course) but BCB leaving the Selic alone.
Still showing strong growth The Atlanta Fed’s GDPNow estimate for the 3Q growth remains at 4.4%. IN their own words: The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2018 is on September 19, unchanged from September 14. After this morning’s new residential construction release from the U.S.…
Draghi in Berlin There were no comments on the outlook or monetary policy so far from Draghi in Berlin. He’s talking about the EU fiscal instrument and says that it should be large enough to restore full confidence and stability but should be designed properly to avoid moral hazard.
Comments by PBOC governor Yi Gang ForexLive Tightening credit and liquidity has been a real issue for Chinese banks and companies this year and it’s been a balancing act for the most part by the PBOC. There’s to continue to pump more liquidity into the market so that will be something to look out for…
Comments by BOE economist Andy Haldane – Concerns have picked up sharply over the past few months – Concerns about understanding, trust and legitimacy of central banks are real ForexLive
The Wall Street Journal reports on the nomination of Nellie Liang, a Federal Reserve long-termer, to the Board – a former Federal Reserve economist – joined the Fed in 1986 citing a person familiar with the matter
BOJ governor Kuroda still on the mic – BOJ has now brought in forward guidance – As long as there is uncertainty, will maintain low rates – By adding forward guidance, policy framework has been made stronger ForexLive
Reuters sources Citing three sources, Reuters reports that OPEC/non-OPEC production declined in August because of falling Iranian supply but that countries are now discussing a 500K bpd increase.
Goldman sees more tariffs coming There are about $267 billion in goods that aren’t covered by US tariffs that were announced this week and will take effect next week. Economists at Goldman Sachs say that won’t be the end. They see a 60% chance that virtually all of the goods imported into the US from…
38.2% retracement and 200 hour MA tested. The GBPJPY rallied up to a high of 149.706 in the Asian session. That rise did take the price above a topside trend line. When the break failed late in the Asian session/early European session, the corrective move lower began.