Softer USD persists; ECB no change; Turkish CB takes action

Softer-than-expected inflation data from the US on Thursday, did not help the USD’s southbound performance this week. As we rise to Friday we see that the US dollar index is entering its fifth consecutive day of losses.

Headline CPI data for the month of August (y/y) was out at 2.7% against a previous 2.9% and expected 2.8%. The same figure stripped of food and energy (core inflation) was out at 2.2% against a previous and expected 2.4%.

The US Dollar had already been suffering earlier this week as US-China trade tensions eased a little.

No change fromn the ECB yesterday, in line with expectations. The aim is still for the current asset purchases program to be wound-up by the end of this year, and for rates to stay low at least through next summer.

In attempt to stabilise the Turkish Lira, the Turkish central bank raised its policy rate to 24% on Thursday. The move sent positive ripples for other emerging market currencies that found renewed support as well.

The highlights of today’s economic docket go for Advanced Retail Sales and U. Of Michigan Sentiment index from the US, while earlier in the morning BoE’s Carney is expected to speak in Dublin.

Original Article