European FX Open - Germany again the early focus

Londoners return to desks to find the USD little overall changed from Friday's closing prices, still very much on the back foot following Friday's more dovish than expected comments from Fed Chair Powell at Jackson Hole.

Recall Powell declared that ‘the time has come for policy to adjust’, but then added for good measure, that the ‘timing, pace of cuts to depend on data, outlook, risks’. Powell stated that his confidence has grown that inflation is on a path to 2% and argued that the current rate level gives the Fed ample room to respond to risks.

Powell said further that the Fed doesn't seek or welcome a further cooling in the labor market.

Since, Fed's Daly said she believes it’s appropriate for the US central bank to begin cutting interest rates and September easing looks nailed on!

To today and a German start to the morning.

After yesterday's IFO slips, at the top of the hour comes Gfk consumer confidence for September and final Q2 GDP, the latter seen confirmed at -0.1% q/q.

That data are followed by the likes of Swedish PPI, UK CBI dist sales and in the second half US consumer confidence for August, which is expected to improve to 100.9 vs 100.3 the month previous.

Overnight, China’s industrial profits expanded at the fastest pace in five months in July, but weak domestic demand casts doubt on whether that resilience can last.

On the central bank front, we look forward to hearing from ECB's Knot and Nagel.

Meanwhile, Kono Taro declared his candidacy to lead the ruling Liberal Democratic Party in Japan. Bbg described Taro as a political maverick now serving as the minister for digital transformation and called for fiscal restraint and highlighted his experience in various cabinet roles.

And in France, President Macron is set to continue talks for a viable PM today after ruling out leftist candidate Castets.

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