Global Markets:
- Asian stock markets: Nikkei up 1.10 %, Shanghai Composite fell 1.75 %, Hang Seng declined 0.35 %, ASX gained 0.15 %
- Commodities: Gold at $1146.50 (-0.65 %), Silver at $15.09 (-0.25 %), WTI Oil at $45.25 (+0.75 %), Brent Oil at $48.40 (+0.10 %)
- Rates: US 10 year yield at 2.14, UK 10 year yield at 1.75, German 10 year yield at 0.60
News & Data:
- Japan National CPI (YoY) Aug: 0.2% (exp 0.1% prev 0.2%)
- Japan Services PPI (YoY) Aug: 0.7% (exp 0.5% prev 0.6%)
- BoJ Core Core Inflation Estimate (YoY) Aug: 1.1% (prev 0.9%)
- Fed Chair Yellen: Rate Hike Timing, Pace Depends On How Outlook Unfolds
- Fed Chair Yellen: Likely Appropriate Hike FFR Sometime Later This Year — BBG
- PBoC’s Sheng: CNY May Overreact In Long Term, Have Plenty Of Policy Room
- Sheng: China Can Still Meet 7% Growth Target
- Sheng: FX Reform To Narrow CNY/CNH Spread — BBG
- Sheng: Right Time To Reform CNY
- PBOC Fixes Yuan Reference Rate At 6.3785 (prev 6.3791)
- Japanese Gov’t Downgrades Economic Outlook For The First Time Since October 2014: Economy In Recovery, Some Parts Slowing — RTRS
- Japanese FinMin Aso: Excluding Energy Expect CPI To Follow Moderate Rise Ahead — RTRS
Markets Update:
The US Dollar strengthened after comments from Federal Reserve Chair Yellen gave USD bulls new hope that the central bank is still on track to hike interest rates later this year. EUR/USD fell sharply after almost touching 1.13 yesterday. It reached a low of 1.1159 overnight and remains offered. GBP/USD has slowed down a bit, but still remains under pressure and a test of 1.5160 seems likely in the short-term. USD/JPY is caught in the 119-121 range given mixed sentiment (USD strength/weak global equities). The Aussie and Kiwi Dollar have recovered somewhat, along with commodities. AUD/USD is back above 0.70 after finding support at 0.6940, while NZD/USD has made it to a high of 0.6353.
Upcoming Events:
- 07:45 BST – French Consumer Confidence
- 08:00 BST – Bundesbank President Weidmann speaks
- 09:00 BST – Euro Zone M3 Money Supply
- 13:30 BST – US GDP
- 14:15 BST – FOMC Member Evans speaks
- 14:45 BST – US Services PMI
- 15:00 BST – US Michigan Consumer Confidence
