Dollar a little softer ahead of the Fed

The dollar is a little softer against the euro this morning ahead of the Fed’s latest policy  announcement later today (7pm Irish time), trading at around $1.1050. The pound remains largely in consolidation mode after its recent gains, hovering around 88.5p against the single currency and close to $1.25 against the dollar, as Irish Foreign Minister, Simon Coveney, says he is in extensive albeit informal talks with the UK about solutions to the backstop problem

Oil prices have fallen back to around $65 per barrel (from close to $70) amid hopes that Saudi oil production may get back up and running more quickly than initially feared following the attack over the  weekend. There’s a US threat hanging over Iran though, which may keep oil prices elevated. Meanwhile, bond yields in the US have nudge down a bit more with 10-year yields now just below 1.8% (from 1.9% at Fridays’ close)

Manufacturing output in the US rose for a third month in four in August and looks as if it is now recovering, though modestly so, after falling quite sharply in the opening months of this year

The Fed is expected to cut interest rates by a quarter point for a second time in effectively a couple of months today and to leave the door open for a further reduction if necessary. There may again be some dissent though, with perhaps one or two members preferring (and voting) to keep rates on hold

Data due today include CPI inflation in the UK and housing starts in the US