Global Markets:
- Asian stock markets: Nikkei down 0.45 %, Hang Seng rose 2.70 %, ASX fell 1.00 %
- Commodities: Gold $1111.40 (-0.20 %), Silver at $14.49 (-0.20 %), WTI Oil at $45.20 (+1.00 %), Brent Oil at $48.00 (+0.05 %)
- Rates: US 10 year yield at 2.04, UK 10 year yield at 1.76, German 10 year yield
News & Data:
- Japan Unemployment Rate (Aug): 3.4% (exp 3.3% prev 3.3%)
- Japan Household Spending (YoY) Aug: 2.9% (exp 0.3% prev -0.2%)
- Australia Retail Sales (MoM) Aug: 0.4% (exp 0.4% prev -0.1%)
- New Zealand ANZ Commodity Price Index NSA (MoM) Sep: 5.5% (prev -5.2%)
- South Korea CPI (MoM) Sep: -0.2% (exp 0.2% prev 0.2%)
- Fed's Williams: October is live meeting for lift off
- Fed’s Williams: Unconcerned by huge financial market response when lift off occurs
Markets Update:
Weaker than expected US Manufacturing PMI data led to broad USD weakness in yesterday's NY session, helping EUR/USD to reach 1.12 and GBP/USD 1.5180. Overnight, the USD recovered somewhat. EUR/USD fell from 1.1205 to a low of 1.1175, while GBP/USD failed to sustain the little upside momentum it had in NY and declined to 1.5125. It then spent most of the Asian session in a 1.5125-50 range. USD/JPY tested the 119.50 support level once again yesterday and managed to bounce from there. The pair was bid in Tokyo and reached a high of 120.05. Traders are now looking forward to the NFP release at 13:30 BST and price action is likely to remain quiet until then.
Commodity currencies declined overnight, with exception of the Canadian Dollar, which is performing very well despite yesterday's sharp drop in oil prices. USD/CAD found some support at 1.3220 (Sep 22 low) and should we break lower the next notable levels lie at 1.3175 and then 1.3120. AUD/USD fell from 0.7055 at the Tokyo open to a low of 0.7010, while NZD/USD declined from 0.6420 to 0.6385.
Upcoming Events:
- 08:00 BST – Spanish Unemployment Change
- 09:30 BST – UK Construction PMI
- 13:30 BST – US NFP
- 13:30 BST – US Unemployment Rate
- 13:30 BST – US Average Hourly Earnings
- 14:00 BST – FOMC Member Bullard speaks
- 15:00 BST – US Factory Orders
