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September in the Markets.

Bank of England Reports Published in September 2019

Quarterly Bulletin – 2019 Q3 – Read the report

This article looks at the authorisation process for banks in the UK. It explains the roles and responsibilities of regulators in authorising banks and outlines the process that a firm goes through when it wants to set up a bank.

Agents’ Survey on Preparations for EU Withdrawal – Read the report

The bank studies the preparedness of British businesses for a Deal, or a No Deal Brexit. Around two-thirds of respondents felt their company was “as ready as can be” for a no-deal Brexit, down slightly from the June and July surveys.

Employment and the Collateral Channel of Monetary Policy – Read the report

This paper uses detailed firm-level data to show that monetary policy affects employment through housing collateral and corporate debt.

Brexit Uncertainty ‘Could Lead to Interest Rate Cut’

From: The BBC

Rising fears about the health of the global economy have prompted talk of recession, spreading anxiety about jobs and growth.

The US-China trade war is casting a shadow over the world economy and warning signs of a looming downturn have flashed on financial markets.

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US Dollar May Rise vs Euro if US-EU Trade War Escalates

From: Daily FX

The dispute is nothing new, there are over a decade of allegations that the EU has been illegally subsidizing aircraft giant Airbus, but Brussels also has a similar complaint against Boeing over accusations of illegal US subsidies.

The US Dollar may extend gains against the Euro if US-EU trade war tensions escalate.

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Pound Higher but FX Traders Wary

From: Daily Forex

The Pound Sterling finishes September higher in London trading, regrouping after earlier losses. The Office of National Statistics in the UK reported that 2nd quarter GDP improved to 1.3% on an annualized basis, slightly better than had been predicted at 1.2%.

On a quarterly basis, however, and with more economic relevance, GDP remained flat at -0.2%. Total business investment, though still a negative, was at least not as bad as the analysts had predicted.

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Euro Extends Drop After Report on German Growth Cuts

From: Reuters

The euro extended its fall on Monday and headed for a new two-year low after Reuters reported that Germany’s leading economic institutes had revised down their growth forecast for Europe’s biggest economy for this year.

The single currency weakened 0.3% to as low as $1.0906 after the story was published, which cited sources with knowledge of the institutes’ decision.

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Its Leash Lengthened, China’s Yuan Flirts with Trade War Role

From: Reuters

China, having let the yuan cross the once sacred red line of 7 per dollar, will allow its currency to fall further and may even risk U.S. anger by using it as a bargaining chip in already thorny trade talks, market participants believe.

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FX Rates in September

GBP/EUR

August GBP vs USD Currency FluctuationsSep High: 1.1368
Sep Low: 1.1031
Sep End: 1.1240

GBP/USD

August GBP vs USD Currency FluctuationsSep High: 1.2572
Sep Low: 1.2116
Sep End: 1.2294

EUR/USD

August EUR vs USD Currency FluctuationsSep High: 1.1088
Sep Low: 1.0920
Sep End: 1.0930