Date: October 27, 2021
News Author(s): Peter Nurse
Photo Credit: Investing.com
Source: Investing.com
The dollar edged lower in early European trade Wednesday in calm trading ahead of next week’s Federal Reserve meeting, while the U.K. budget places sterling in focus.
At 2:30 AM ET (0630 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 93.892.
USD/JPY traded 0.1% lower at 114.03, EUR/USD edged 0.1% higher at 1.1603, while GBP/USD slipped marginally to 1.3763 ahead of Britain’s annual budget.
The Federal Reserve has now gone into a blackout period ahead of next week’s policy-setting meeting, and ahead of this traders are focusing on the release of a series of important data releases.
Wednesday’s sees the release of the September durable goods orders, but the 3Q GDP release on Thursday and the September core PCE deflator on Friday will attract the most attention.
Elsewhere, AUD/USD rose 0.2% to 0.7513 after Australian core inflation rose at its fastest annual pace since 2015, prompting traders to price in earlier hikes in interest rates.
The headline consumer price index rose 0.8% in the third quarter and 3.0% for the year, much as expected, but the annual measure of core inflation accelerated to 2.1%, well above the 1.8% expected and putting it back in the RBA's 2% to 3% target range for the first time in six years.
Sterling could be vulnerable Wednesday as U.K. Chancellor of the Exchequer Rishi Sunak delivers his annual budget.
Much of the talk ahead of this set piece has been about Sunak loosening the purse strings, following leaks that he is set to end the public sector pay freeze, but the Chancellor still faces a tricky balancing act in this year’s budget. Too much largesse and he risks sparking more inflation with the Bank of England already looking at tightening monetary policy, but too little and he risks strangling an already hesitant recovery.
“The pre-budget leaks have typically involved new spending plans rather than how this is going to be paid for. That does perhaps leave GBP a little vulnerable tomorrow should the UK Chancellor announce any kind of fiscal consolidation,” said analysts at ING, in a note.
USD/CAD traded largely flat at 1.2391 ahead of the Bank of Canada latest policy-setting meeting later this session. The central bank is expected to reduce its weekly government bond purchases again, marking the fourth time over the past 12 months the central bank has rolled back its program, paving the way for the start of interest rate increases next year.
Keywords: sterlinghousetrust.com, Sterling House Trust, SHT
Sterling House Trust is a private trust with a difference. It offers its members an exclusive and reliable platform to access unique opportunities and lifestyle services reserved for the select few. With its team of professional managers Sterling House Trust constantly scans the markets and collaborate with reliable global partners to create a portfolio of carefully curated programmes for its members. Members can access these programmes according to their individual needs, interest and financial capacity. Sterling House Trust is headquartered in Auckland, New Zealand, and has operations based in London, UK.
The Sterling House Trust platform was established with the objective of providing its members, secure access to opportunities across a range of global locations, sectors and services.
Our unique Platform was established within the framework of a trust so that the trust would have oversight and governance over the range of services and its quality. Member protection is a core principle and drive in all that we do. Our trustees ensures that the interests and quality of service provided by the Platform are always maintained at the highest standards.
The trust and its trustees provide robust oversight and is constantly on the move to identify and shortlist select opportunities in the international markets. Likewise, we apply the same stringent standards in identifying and selecting providers and professional partners to join our Platform.
The Sterling House Trust Platform utilises our international footfall and relationships to provide our members with access to a range of international opportunities via our global network which covers a broad range of sectors including:
Asset protection, international property ownership and management, alternative and direct ownership, estate planning, banking services, foreign exchange, card services, alternative investment and lifestyle services.
New Zealand Head Office
31/335 Lincoln Road,
Addington
Christchurch
New Zealand
London Office
14-16 Dowgate Hill,
London,
England EC4R 2SU
