Global Markets:
- Asian stock markets: Nikkei fell 0.36 %, Shanghai Composite fell 0.03%, Hang Seng fell 0.35%, ASX200 fell 0.59%
- Commodities: Gold at $1122.20 (+0.07%), Silver at $14.59 (+0.25%), WTI Oil at $45.66(-0.85%), Brent Oil at $49.22 (-0.79 %)
- Rates: US 10 year yield at 2.12% UK 10 year yield at 1.82%, German 10 year yield at 0.67%
News & Data:
- ECB's Nowotny: ECB Buying ABS Is Not As Successful As Initially Expected.
- Fed’s Lacker: Going Into September Meeting With An ‘Open Mind’
- US Change in Nonfarm Payrolls Aug: 173K (est 217K; rev prev 245K)
- Moody's: Chinese Banks Will Face Rising Operating Pressure Over The Next 1-2 Years
- China Revises 2014 GDP Growth To 7.3% (prev 7.4%) – rtrs
- Australia ANZ Job Advertisements (MoM) Aug: 1.0% (prev rev -0.5%)
- Australia AiG PCI (Aug): 53.8 (prev 47.1)
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Germany Set To Beat Export Record Despite China Worries – RTRS
Major currencies update: The US Non-Farm Payroll release on Friday last week missed forecasts, while also seeing upward revisions. The miss on the headline figure was something expected to a certain extent, as August payrolls have a seasonal tendency on average to underperform forecasts since 1984. In reaction to the release, the EUR/USD currency pair experienced a spike as high as 1.1188, before establishing a low at 1.1090, and later rallying to 1.1170, proving largely unchanged from the event release itself. Spot currently trades at 1.1145, with support eyed at 1.1090, and resistance at 1.1180, keeping the pair range-bound as we head into this trading week.
The Pound spiked as high as 1.5273 on the payrolls release, before continuing to trade to the downside to 1.5165. On a basis of comparison, the pound remains weaker to the USD, compared to the euro, as the pair is currently still trading lower after the NFP spike, unlike the EUR of which remains unchanged.
Commodity Currencies Update: The Aussie found offers at 0.7000 during the NFP release and has since traded lower, with spot currently trading at 0.6930. The kiwi on the other hand, proves to be the weakest post-NFP out of the G10 FX bloc, falling a hefty 100 pips from the release to the current spot price of 0.6286, lacking any definitive retracements in between. Trading today might prove light as we head into the US session of trading as today is a bank holiday for US and Canada.
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