As investors prepare for the week’s key macroeconomic events, markets remain relatively quiet on Tuesday. The US Dollar Index moves sideways at around 112.00, US stock index futures trade flat, and the benchmark 10-year US Treasury bond yields modest daily losses near 4.2%.
The US economic docket will reflect the Housing Price Index and S&P/Case Shiller home price indices. Additionally, the Conference Board will release its Consumer Confidence Index for October.
The S&P Global PMI surveys from the US show that business activity in the private sector continued to contract at an accelerating pace in early October. Despite the disappointing data, Wall Street’s main indexes gained between 1% and 1.3%.
On Monday, Sir Graham Brady, chair of the 1922 Committee, announced that Rishi Sunak was voted as leader of the Conservative Party and new prime minister following Penny Mordaunt’s decision to drop out of the contest. The market reaction to this development was muted as it was widely expected.
Meanwhile, Bank of England (BoE) Deputy Governor Dave Ramsden restated that they will take necessary steps to get inflation back to the target while adding that they have to consider the fall in the pound’s value when deciding on the policy.
GBP/USD closed modestly lower on Monday and seems to have gone into a consolidation phase near 1.1300 early Tuesday.
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