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Markets show optimism toward China’s stimulus measures
The Aussie and Kiwi retreated slightly after reaching multi month highs on China stimulus measures.
Euro approaches 13-month high despite weak German economic indicators and French budget concerns.
The British pound strengthened as the Bank of England is seen as less likely to pursue aggressive rate cuts compared to the Federal Reserve.
Oil prices initially rose on stimulus optimism but later retreated, with Brent at $73 and WTI at $69.88.
In currencies
The euro rose by 0.06%, reaching $1.1187, edging closer to a 13-month high of $1.1201 seen in August. Despite weak economic indicators from Germany and concerns over the French budget, the euro held steady against the dollar.
Meanwhile, the Australian and New Zealand dollars retreated after hitting multi-month highs earlier in the session, as China's stimulus was viewed positively for both nations' export prospects.
The dollar fell overnight after data showed an unexpected decline in U.S. consumer confidence in September, heightening concerns about future growth in the world's largest economy. This comes as the labor market also shows signs of contraction.
The British pound has gained support, as the Bank of England is generally viewed as less likely to implement aggressive rate cuts this year compared to the Federal Reserve.
China
China's central bank has introduced a range of economic stimulus measures aimed at preventing further decline in the world's second-largest economy. Persistent weakness in consumer prices remains a significant issue, compounded by an ongoing property crisis. This follows Goldman Sachs' decision to lower its growth forecast to 4.7%.
Oil
Oil prices opened higher on stimulus measures optimism but were quick to retreat with Brent falling back to $73 and WTI to $69.88.
Data from the American Petroleum Institute indicated that U.S. oil inventories decreased by 4.339 million barrels (mb) for the week ending September 20, significantly exceeding expectations of a draw of 1.1 mb.
