European FX Open - BOE to cut?

USD/YEN is a touch softer, but apart from that G10 FX is little changed post-FOMC.

Much of the overnight announcement was clearly priced, as Fed Chair Powell said a rate cut could come as soon as September, unless inflation progress stalls, citing risks of further labor-market weakening.

Fed fallout could be a focus ahead though, as a more dovish Fed outlook surely puts more pressure on the USD's broad resilience.

Moving swiftly on and a possible more interesting central bank response in the form of today's BOE.

It is seen as a relative coin-toss decision though Bbg's survey shows a -25BPs rate cut could come today.

It's also the start of the new month and so a batch manufacturing PMIs releases will be a feature of the morning session.

In the second half, the ISM manufacturing leads, forecast at 48.8 in July vs 48.5 last.

Overnight, the private China Caixin manufacturing PMI unexpectedly fell to 49.8 vs a 51.5 consensus and 51.8 the month previous. It was a first contraction in nine months in July, a sign that China's key export sector might be cooling, darkening the economy's outlook.

Elsewhere, oil stays above the psychological Usd 80brl mark after Iran was reported to have ordered a retaliatory strike on Israel for killing a Hamas leader on its own soil.

Meanwhile, Bbg reports the US is considering unilateral restrictions on China's access to AI memory chips and equipment capable of making those semi-conductors as soon as next month, a move that would further escalate the tech rivalry between the world's biggest economies.

And, PredictIt show Donald Trump now trails Kamala Harris in the US presidential race, with Harris ahead at 53%.

In China, the official Securities Daily reported. the PBOC is seen cutting the reserve requirement ratio and interest rates in Q3 after the Politburo vowed to step up economic and policy support.

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