Headlines:
- US futures continue to ramp higher on the session
- BOE leaves bank rate unchanged at 4.00% in September monetary policy decision
- Was the Fed decision dovish or hawkish? Let's see what we got compared to market pricing
- Fed decision has a little bit of something for everyone
- ECB's de Guindos: Present policy stance is appropriate
- Eurozone July current account balance €27.7 billion vs €35.8 billion prior
- Switzerland August trade balance CHF 4.01 billion vs CHF 4.59 billion prior
Markets:
- EUR leads, NZD lags on the day
- European equities higher; S&P 500 futures up 0.7%
- US 10-year yields down 1.6 bps to 4.060%
- Gold up 0.2% to $3,666.78
- WTI crude up 0.4% to $64.31
- Bitcoin up 1.3% to $117,178
Markets continued to digest the Fed decision from yesterday for the most part in European trading today. And with all else happening, it seems that market players are leaning towards wanting US data to prove their Fed pricing wrong. As such, it was a case of carrying on as you will - at least before we get to US trading today.
Equities bounced back with US futures pointing to solid gains at the open later. S&P 500 futures are up 0.7% with tech shares leading the way, as Nasdaq futures are up 1.0%. That is helping to see European indices jump up as well with the DAX and CAC 40 posting over 1% gains on the day.
In FX, the dollar was firmer earlier on but has lost some ground during the session. EUR/USD fell to 1.1780 earlier in the day but is now trading back up slightly to 1.1820 with the high earlier touching 1.1848. USD/JPY is steadier though, seen up 0.3% to 147.40.
Meanwhile, GBP/USD is down after the BOE kept its bank rate unchanged at 4.00%. The pair was holding around 1.3650 earlier but is now down 0.1% on the day to 1.3611 despite not much meaningful change in the BOE communique.
NZD/USD is the laggard, down 1.0% to 0.5901 after a more dismal NZ Q2 GDP from earlier in the day.
Elsewhere, we are seeing gold also recover some poise after dropping to a low of $3,634 during the session. The precious metal is back up by 0.2% to $3,666 now with dip buyers moving quickly as the post-Fed musings continue to play out.
With the focus returning to US data to either reaffirm market expectations or invalidate them, we'll have a quick test of that later today from the US weekly initial jobless claims. So, that could yet sway the post-Fed mood before we get to the weekend later this week.
