Weekly News Summary For September 27 to October 3, 2019

Friday, September 27: Euro, Pound Drops on Brexit and Slowdown Concerns

The euro and the British pound remained in red territory against the dollar on Friday, as fears over a no-deal Brexit resurfaced and as short-term data suggested the slowdown in Europe’s economy is likely to continue.

The sterling declined after BoE policymaker Michael Saunders said a rate cut is possible if the uncertainty over UK’s withdrawal from the EU persists, while the euro registered a new two-year low of $1.09, weighed by weak business confidence surveys from Italy and Spain.

Monday, September 30: Eurozone Unemployment Rate Hits 11-year Low

The Eurozone’s unemployment rate dropped to its lowest in 11 years last month, reinforcing the possibility of the currency area avoiding an economic downturn despite a contraction in its manufacturing sector.

The EU’s statistics agency stated on Monday that the seasonally adjusted jobless rate was down by 7.4% from 7.5% in July, hitting its lowest since May 2008, due to a major fall in Italy and a significant 10,000 slump in Germany.

Tuesday, October 1: RBA Rate Cut, Weaker Tankan Survey Supports Dollar

The US dollar rose overnight, after the Reserve Bank of Australia slashed its rate to a new all-time low, and as the Bank of Japan’s Tankan survey came out less than anticipated.

The currency also climbed against the Swiss franc, as manufacturing activity in Switzerland and other European countries contract more sharply in September.

Wednesday, October 2: US Stocks Fall as Trade War Pressures US Economy

The US’ key indexes posted their sharpest one-day drop in almost six weeks on Wednesday, as the employment and manufacturing report suggested trade tensions are further weighing on the world’s largest economy.

All 11 major S&P sector indexes were down, with energy and financials each losing more than 2%, while the Nasdaq Composite slipped by 1.56%, whereas the S&P 500 and the Dow fell below their 100-day moving averages for the first time in about a month.

Thursday, October 3: Dollar Slips on Economic and Trade Spat Concerns

The dollar fell to new one-week lows against the euro and the Japanese yen on Thursday, as investors remained on edge over the latest indications of a slowing US economy and a deepening global trade spat.

The greenback hit 107 against the yen and reached a one-week low of ¥106.95, while it tumbled to $1.0964 against the euro, although both declines were less than a tenth of a percentage point.