The US Dollar is poised to record a fourth consecutive monthly loss after today's trading day. The Dollar continues to experience a shift in sentiment as a result of the Federal Reserve's adaptation of a new accommodative policy intended to increase the average inflation rate while holding interest rates at current low levels. At the same time, the Euro is expected to see its fourth straight month of gains, testament to the different paths taken by leadership, at least in terms of how the Coronavirus pandemic has been handled. Some analysts are questioning the Fed's decision, and say that even if the economy is bolstered as a result, the greenback will continue to be depreciated as a consequence.
As of 11:06 am in London, the EUR/USD was trading higher at $1.1910, a gain of 0.0328% and off the session peak of $1.19300. The GBP/USD was lower at $1.3312, down 0.2899%; the pair has ranged from a low of $1.33009 to a high of $1.33697. The USD/JPY was higher at 105.9100 Yen, a gain of 0.55% and off the earlier high of 105.911 Yen.
Markets Eye Data from the EU
Market focus will remain on the Eurozone in the short term with a slew of data coming out of the member state's respective statistics offices. Inflation and productivity data are due out for most of the major Eurozone economies. Already, we have learned that Spain's preliminary CPI for August was slightly better than expected, both on an annualized and on a monthly basis. Italy's second-quarter GDP fell short of expectations on an annualized and quarterly basis while CPI was mixed. Germany's CPI data is due out shortly with analysts expecting it to remain unchanged at 0% on an annualized basis.