It has been a rather pedestrian session in Europe today, possibly down to thin holiday markets but more likely a lack of interest prior to Wednesday’s all important Fed meeting. EUR/USD did not like it above 1.40 (some say Asian sovereign name selling) but the pullback has been shallow. AUD/USD has maintained a bullish stance throughout the session (premised on the strong China PMI data) whilst the only mover and shaker was the GBP which charged 50 pips higher on a better than expected PMI reading whilst EUR/GBP slumped 30 pips on the news.
European equities were up 1.0% early before falling back to flat on profit taking ahead of the Fed meeting – last up smalls. US equity future markets retain moderate gains from the China PMI release.
Data wise in the US the main item appears to be the Mfg ISM number at 1400GMT.
