Tuesday, September 10 09:18:51
The ISEQ is higher this morning at 4,268, a rise of 44 points from yesterday's close as World markets react well to the diminished prospects for further conflict in Syria and positive data from China.
The US Dollar is lower overnight and AIB Treasury looks at the currencies story:
It was a fairly subdued start to the week for financial markets yesterday. There was a lack of any major data releases or events to provide fresh news to the market.
From an FX perspective, the weaker tone to the dollar carried over from the end of last week. The weakness was prompted on Friday by the US August employment report, which showed weaker employment gains over the summer months than previously envisaged.
This served to cast some doubt on the consensus view that the Fed would announce a tapering of its asset purchase programme (i.e. QE) at its 17-18 September FOMC meeting, which in turn has led to some dollar weakness.
So with no further macro updates out yesterday, Friday's payroll data and the uncertainty over the timing of QE tapering continued to weigh on the dollar. As a result, both sterling and the euro edged higher against the dollar. The euro managed to regain some ground above the $1.3250 mark, while sterling moved up to around the $1.57 level.
Overnight, the dollar retained its weaker tone. A proposal from Russia that Syria put its chemical weapons under international control is gaining support and could avert a US military strike.
This has boosted risk appetite in markets, which is dollar negative. Looking ahead to today's data/event calendar, it is another quiet day ahead. There are no major releases of note on either side of the Atlantic, meaning currency markets may take on a wait and see approach today, ahead of the first data releases of interest this week, which come tomorrow, with the release of UK labour market data. They will also monitor developments on Syria according to AIB Stockbrokers.