According to Sean Callow, analyst at Westpac, the mood over US-China trade has obviously improved quite a bit but US data has not really encouraged recession talk lately.
“After the dismal sub-50 print on the Aug manufacturing ISM, the key Aug services sector reading was a great relief, the ISM bouncing to 56.4 (vs 53.8 in China, 53.5 in the Eurozone).”
“Resilient growth but sub-target inflation and ongoing international political risks argue for a 25bp cut with no explicit commitment to further easing. This should leave DXY higher on the week, probing above 99.”
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