Economic data is quite strong, and we are not considering suspending interest rate hikes at this time

Low liquidity conditions began to emerge over the summer, with trading activity in major markets becoming listless and volumes starting to dry up. The economic data released on Tuesday was quite strong (U.S. consumer confidence reached its highest level since 2022, durable goods orders rebounded, house price index rose, new home sales increased significantly by 12.2% month-on-month), and yesterday the focus turned to the Sintra Congress G4 Bank Summit. Powell (Federal Reserve), Lagarde (European Central Bank), Ueda (Bank of Japan) and Bailey (Bank of England) gathered together yesterday, but their collective performance was quite cautious. Central bank leaders strictly followed the content of the recently written script and did not provide it to Traders use new information as trading material.

Overall, the four major central banks managed to stick to their respective playbooks, with markets barely affected – mission accomplished once again!