FX Closing Comments

FX trading is perhaps less range-bound than previous weeks, although price action remains subdued. Today, the Pound was the biggest mover, while the Yen continued to be under pressure. The Dollar Index was essentially flat at +9. It is notable that the Pound moved above the 1.90 against the greenback. Some of the positive Pound sentiment came from the August CBI sales index, which contained an upside surprise, leaping to +12 from +7. The market was looking for a dip to +5. A lot of data in store for tomorrow, most notably the core PCE deflator (expect +2.4%) and factory orders (expect 1%).