• U.S. economic data
  • Fed officials united
  • ECB not budging
  • Aussie dollar diminishing

U.S. data has been mixed of late, as retail sales disappointed but employment numbers are still favorable. In addition, the global atmosphere has storm clouds brewing on the back of news of deflation in an increasing amount of countries. Consumer sentiment out of the U.S. will be released at 10 a.m. for October, and will give a good indication how the average Joe feels about how the U.S. is doing.

The Fed, meanwhile, doesn’t seem very confident in the U.S. itself, with its members disagreeing publicly as to if the U.S. was ready for a rate hike in September or not. New York Fed President William Dudley is trying to downplay the disparity between Fed members’ views, as the uncertainty of the FOMC is clearly spilling into investors and economists.

The ECB (European Central Bank) is not giving in to rumors about them increasing QE. Mario Draghi, the President, seems to be pleased with the effects that QE is having, saying it “surpassed our initial expectations”. It appears that Draghi will not institute more bond-buying, but might cut rates further if the euro appreciates.

EURUSD is coming back down again today, after almost reaching 1.15 levels the other day. If sentiment is sour in the U.S. (10 a.m.) it is likely the euro will get a boost.

GBPUSD is mostly flat this morning, as attention is still on Europe and the U.S. There isn’t anything on the economic docket of note until next Thursday.

USDCAD is up again, with oil futures down this morning. The recent volatility in oil may be priming CAD to be more dependent on economic indicators, stating with the Bank of Canada’s monetary policy report next Wednesday.

AUDUSD is down more than 1% this morning, as investors fear a rate hike is coming. China’s imports showed a massive decline for last month, a fact that is not lost on the currencies, including Aussie, are not discrediting.