GBP

The pound had has recovered from one month lows hit overnight against the dollar . Sterling fell on Wednesday evening following the Federal Bank meeting where the Central Bank signalled that it could begin tapering their bond buying scheme as soon as November. However , the pound has been helped in Asian trading by “risk on “ sentiment as China’s struggling property developer Evergrande Group agreed to settle interest payments on a domestic bond on Wednesday and eased immediate fears of contagion effect to other property firms and banks . Sterling remains within recent ranges against the Euro . Markets will now focus the Bank of England policy meeting later today where traders will be keen to see the voting on ending the UK’s asset purchase programme. Interest rates are expected to remain on hold .

EUR

After hitting a month low against the dollar yesterday evening , the euro has gained 0.3% in early trading. There was little reaction to yesterday’s comments from ECB governing council member Madis Muller who said there were no guarantees that ECB will continue regular asset purchases once the pandemic emergency stimulus comes to an end. His remarks point to the potentially contentious debate that awaits policy makers, especially those who worry that a return to the pre-Covid set-up would hit heavily indebted countries not yet ready to function without ECB support. Manufacturing data for the eurozone is due for release this morning .

USD

The dollar has eased slightly from one months following last night’s meeting . The greenback gained after the Federal Reserve Bank released a new policy statement on Wednesday saying it could begin reducing its monthly bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected . Economic projections from the statement showed that nine of the eighteen policymakers ready to raise interest rates next year in response to inflation that the Central Bank now expects to run at 4.2% this year , more than double its 2% target .

Economic Calendar

12.00 pm UK BOE Meeting

1.30 pm US initial jobless claims