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In Money Minute this morning, we get the latest snapshot of eurozone-wide economic confidence.
With confidence waning in the eurozone’s biggest economies, Germany and France, the latest index is likely to indicate that the region as a whole is slowing, though not yet in recession.
Later today in the US, the Federal Reserve announces its latest decision on interest rates. The Fed is viewed as almost certain to cut interest rates by a quarter of a percentage point. That will be the third cut in a row, and it will take the US central bank’s target range down to 1.5% to 1.75%.
The big question is – what happens next? Will Fed chief Jerome Powell indicate that further rate cuts are likely before the end of the year? Or will he stick to the line that the decision is “data dependent” – in other words, wait and see? If he is more open to further cuts than the market expects, we could see the dollar weaken. If he is more hawkish than expected, the dollar could rise.