G20 Summit Fails to Agree on Statement as Dollar-Yen Pair Sees Short-Covering Rally

The G20 summit failed to agree on a statement, with media accounts blaming China. However, this outcome does not necessarily mean that Washington's 'Operation Economic Outcast' has been successful in isolating countries from Chinese trade. The Shanghai Cooperation Council did release a statement expressing solidarity with Iran.

In the foreign exchange market, the dollar-yen pair saw a dramatic short-covering rally, but some analysts believe this may be due to large pools of capital adjusting positions rather than intervention itself.

The European Central Bank is expected to hike interest rates by 25 basis points on Thursday, and the US will report August CPI data on Friday. The outcome of these events could influence speculation about a Federal Reserve rate hike on September 16.