Forex Weekly Round Up 28 September 2015 – 2 October 2015

The US central bank delayed a rate hike at its September meeting in the face of uncertainty about the global economy, a market selloff in the US and concern that inflation might fall further away from the Fed’s two percent target.

German annual inflation turned negative in September for the first time in eight months and the weaker than expected reading could push the euro zone rate below zero, boosting the case for the European Central Bank to take more action.

US consumer confidence rose and was higher than expected in September, according to a private sector report released on Tuesday. The Conference Board said its index of consumer attitudes rose to 103.0, the highest since January, from a downwardly revised 101.3 the month before.

Figures released on Wednesday showed that the UK economy grew in line with expectations in the second quarter, underlining optimism over the health of the economy and supporting the case for higher interest rates. GDP expanded at a rate of 0.7% since the end of June, which met with forecasts.

A report out on Thursday said the Eurozone is in a “sweet spot” as it benefits from lower energy prices, a more competitive exchange rate and solid demand in the UK and US. The financial services firm predicts that investment spending will pick up in 2016, which will in turn boost GDP from 1.6% to 1.8% in 2016.

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