GBP, Euro

Last week’s political tensions in Spain and Brexit issues in the U.K. adversely affected the performances of both the euro and pound as the greenback surged ahead of its competitors.

GBP Comeback

After the GBP performed woefully last week, the currency bounced back on Monday after Prime Minister Theresa May provided assurance that she will address all the challenges surrounding her leadership and over the weekend, May made a remark that hinted that she is considering reshuffling her cabinet so that she can have more control and authority. This has allowed the sterling to rise by 0.5% and hit a high today of $1.3183 after dropping to a low of 1.3026 last week and was the biggest winner during Monday’s trading session.

Worst Performers

The CHF was the worst performing currency of Monday’s session. This is attributed to the risk-on vibes that haven’t been shown so far today. The Yen was a close second but not much can be made of that as Japan started the week on a holiday.

Today’s Asian Session

There wasn’t much activity today during the Asian session as some countries like Japan, Taiwan, and South Korea greeted the week with holidays. NZD happened to be the only high-yielding currency as China’s weaker-than-expected PMI and an internal affair concerning the election helped to push the currency ahead.

Major Events of the Week.

The other major events slated for this week are:

• JOLTS Job Openings: Wednesday, 14:00. This data eye by the Federal Reserve as it is a very big indicator of how the US economy is performing. The last data that was released was in July and the number of job opening stood at 6.17 million. It is expected to drop through with 6.06 million on the card.
• FOMC Meeting Minutes: Wednesday, 18:00. The minutes from the FOMC will be released on Wednesday. The last one released in September highlighted the reduction of the balance sheet and the rate hike that remain unchanged. The focus for this month will be on inflation.
• US PPI: Thursday, 12:30. For the month of August, the headline PPI increased by 0.02% while the core PPI, on the other hand, increased by 0.1%. The month of September is expected to bring changes as Headline PPI is expected to increase by 0.4% while the Core PPI will go further to 0.2%
• Mario Draghi talks: Thursday, 14:15. This is a very important event as the president of ECB is expected to address a panel in Washington. He is expected to talk more about the upcoming decision by the bank to reduce their bond-buying scheme
• US CPI: Friday, 12:30. Headline CPI is expected to increase by 0.6% while the core CPI will rise by just 0.2%
• US retail sales: Friday, 12:30. The data was rather disappointing for August as Headline sales dropped by 0.2% while the Core sales increased by 0.2%. It is expected that headline sales will make a comeback with an increase of 1.5% while the core sales will advance further with 0.9% increase.
• US consumer sentiment: Friday, 14:00. This is a crucial data that shows how consumers feel. For the month of September, the final read was 95.1 points and it is expected to go a bit further this October with 95.4 points expected.