GBP
On Friday the UK’s  trade deficit
was reported to narrow by £1.3 billion compared with July
2014. The main factor behind the deficit narrowing was not an increase in
exports but a large fall in imports from non-EU countries. Between July 2014
and August 2014, exports of goods decreased by £0.7 billion to £23.2 billion
mainly attributed to oil. Over the same period, imports of goods decreased by

GBP
On Friday the UK’s  trade deficit
was reported to narrow by £1.3 billion compared with July
2014. The main factor behind the deficit narrowing was not an increase in
exports but a large fall in imports from non-EU countries. Between July 2014
and August 2014, exports of goods decreased by £0.7 billion to £23.2 billion
mainly attributed to oil. Over the same period, imports of goods decreased by
£2.0 billion to £32.3 billion reflecting falls in imports of aircraft,
fuels and chemicals

EUR
Mario Draghi and Jens Weidmann are clashing over how much more stimulus the
ailing euro-area economy needs from the European Central Bank. As Europe’s woes
again proved the chief concern at weekend meetings of the International
Monetary Fund in Washington, President Draghi repeated he’s ready to expand the
ECB’s balance sheet by as much as 1 trillion euros ($1.3 trillion) to beat back
the threat of deflation. Bundesbank head Weidmann responded by saying that a
target value is not set in stone.

The ECB is swelling its balance sheet as it seeks to revive inflation of 0.3
percent, its lowest in almost five years by buying private-sector assets
and accept collateral from banks in return for cheap loans. Still
unresolved is if the ECB will ultimately buy sovereign debt, a taboo
subject in Germany where politicians worry it amounts to financing governments
and removing pressure on them to act.

USD
Federal Reserve officials sounded an alert over the threat to U.S. growth from
a slowdown elsewhere in the world, warning it could make them delay an
interest-rate increase. Fed  vice Chairman Stanley Fischer said
yesterday in a speech at the International Monetary Fund’s annual meetings in
Washington“If foreign growth is weaker than anticipated, the consequences for
the U.S. economy could lead the Fed to remove accommodation more slowly.”
.
INR 
India’s rupee snapped four weeks of losses on optimism a retreat in oil prices
will help narrow the nation’s trade deficit. Brent crude dropped to $88.11
a barrel today, the lowest level in almost four years, and is poised for a 3.1
percent loss this week.

India imports about 80 percent of its oil and its trade shortfall narrowed to
$10.8 billion in August from $12.2 billion in July as prices fell. The
International Monetary Fund this week raised its 2014 growth forecast for the
nation to 5.6 percent from 5.4 percent and predicted Asia’s third-largest
economy will expand 6.4 percent next year.

Key
Announcements:
USD – Bank holiday today.

There are no Key announcements today.

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