U.S. Session Forex Recap – Sept. 28, 2016

  • U.S. Sept CB consumer confidence index climbed to 104.1 vs. 98.6 forecast
  • U.S. CB consumer confidence index upgraded from 101.1 to 101.8 in Aug
  • U.S. flash services PMI rose from 51.0 to 51.9 vs. 51.1 forecast
  • Richmond manufacturing index up from -11 to -8 vs. -2 consensus

Rally and reverse! The Greenback tossed and turned throughout the New York trading session as economic releases failed to push the currency in a clear direction.

Major Events:

Mostly upbeat U.S. data – Reports from Uncle Sam were mostly in the green, reviving confidence in the U.S. economy and allowing equities to recover after a couple of jittery days ahead of the presidential debates.

For the month of September, the CB consumer confidence index showed a climb to 104.1 instead of the expected slid to 98.6. This indicates a strong pickup in optimism, coming from the August figure that was upgraded from 101.1 to 10.8. The flash services PMI for September also churned out a much stronger than expected read, rising from 51.0 to 51.9 and outpacing the estimated 51.1 figure.

On the other hand, the Richmond manufacturing index managed to show a bit of improvement by rising from -11 to -8 to reflect a slower pace of contraction, but this was short of the projected climb to -2.

“Progress” from OPEC – In the press briefing during their quick pow-wow in Algiers, OPEC leaders mentioned that they’re not really expecting an output cap deal to come through just yet. Womp womp womp.

According to Saudi energy minister al-Falih, some nations had expressed willingness to cooperate by adjusting production levels but that they’re still debating on the output levels for Iran, Nigeria, and Libya. Russian energy minister Novak added that they will do their part in helping rebalance the oil market and that they could reach an agreement later in the year.

For Venezuelan energy minister Del Pino, the market could be headed for a price collapse if they don’t come up with something soon. On a less downbeat note, he affirmed that conditions for an OPEC deal are better now and that leaders could reach a consensus before any of their official meetings.

Major Market Movers:

GBP – The British currency took advantage of the light trading day to regain ground against its forex rivals.

GBP/USD bounced from 1.2988 to a high of 1.3021 (+0.25%), EUR/GBP fell from .8643 to .8612 (-0.26%), GBP/JPY is up from 130.27 to 130.60 (+0.25%), GBP/CAD climbed from 1.7120 to 1.7238 (+0.69%), and GBP/NZD is up from 1.7803 to 1.7853 (+0.28%).

Watch Out For:

  • 12:20 am GMT: RBA Assistant Gov Edey’s testimony

See also:

London Session Recap

Asian Session Recap

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