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Here is what you need to know on Thursday, September 26:

  • The US dollar consolidated its gains with EUR/USD hovering above the 2019 lows. Robert Kaplan, President of the Dallas branch of the Federal Reserve and a known dove, said that further cuts have diminishing returns.  
  • Trade: China pledged to buy more agricultural goods from the US and President Donald Trump said a deal is “closer than you think.” On the other hand, the US imposed sanctions on Chinese companies that traded with Iran.  
  • Trump has been under criticized for asking Ukraine for political help against his potential 2020 rival Joe Biden. The Justice Department released the transcript from a conversation Trump had with his Ukranian counterpart, which is the trigger for Democrats’ impeachment inquiry.  
  • The UK parliament returned to session and prime minister Boris Johnson remained defiant despite his failure in suspending parliament. He challenged the opposition to opt for elections, while his rivals first want to see that a no-deal Brexit does not occur. UK-EU talks continue without a breakthrough on the Irish border. GBP/USD has been struggling.
  • Sabine Lautenshläger, a hawkish member of the European Central Bank, announced she is stepping down at the end of October. She has opposed the latest moves.  President Mario Draghi is speaking later today.
  • NZD/USD has stood out with gains after Adrian Orr, Governor of the Reserve Bank of New Zealand, seemed to rule out further imminent rate cuts or unconventional monetary policy.
  • Final US GDP is expected to confirm the previous read of 2% annualized growth in the second quarter. New Home Sales beat expectations on Wednesday with a leap above 713K annualized.  
  • Oil prices continue sliding after further assurances from Saudi Arabia that production has returned to normal.
  • Cryptocurrencies have been consolidating their losses with Bitcoin trading around $8,300.