Muted currency market ahead of FOMC two-day meeting

Reserve Bank of Australia

Reserve Bank of Australia (RBA) minutes show that Governor Philip Lowe and the board considered a 25-basis-point hike in interest rates before eventually deciding to hold the benchmark cash rate unchanged at 4.1%, as they believe that the effects of a tightening cycle have yet to be felt. "Members recognised the value of allowing more time to see the full effects of tightening monetary policy since May 2022, given the lags in the transmission of policy through the economy."

This was the final meeting chaired by Governor Philip Lowe. Former deputy governor Michele Bullock began her first day in the top role on Monday.

Canada Consumer Price Index

In Canada, the latest Consumer Price Index (CPI) data is due at 1.30 p.m. and is expected to show persistent inflation. Headline CPI growth is expected to accelerate to 3.8% in August YoY, from 3.3% in July. Core CPI is also expected to rise more than the previous month, by 3.5% year-over-year (YOY).

Kingfisher

A few retailers are set to post reports throughout the week, which will give us further insight into consumer spending and how much inflation is hurting disposable income. Kingfisher, the owner of B&Q and Screwfix, cuts its full-year profit forecast. For the first half of the year, the group posted an operating loss of £19 million.

Revenues were in line with expectations, coming in at £6.88 billion. Ocado Retail maintains its full-year profit outlook after reporting a 7.2% rise in third-quarter revenue. The number of active customers in the period rose by 1.5% compared to Q3 last year.

TUl

TUI confirmed its full-year outlook for the 2023 financial year, citing strong bookings in the summer. TUl's summer bookings for 2023 were at 13.7 million, up 5% over the previous summer season. Forward bookings are up 15% against the winter of 2022 and 2023. Instacart shares will start trading this afternoon on the New York Stock Exchange, and in the wake of Arm's debut, it boosted its initial range by about 7%.

Instacart

Instacart has priced its shares at $30, at the top end of the $28–$30 range it gave investors last week. $30 per share values the group at $8.3 billion. On a fully diluted basis, the group's stock is worth $10.2 billion. Instacart will float 8% of its stock and raise about $660 million.