Global Markets:
- Asian stock markets: Nikkei down 3.60 %, Shanghai Composite lost 1.85 %, Hang Seng declined 3.50 %, ASX fell 2.75 %
- Commodities: Gold at $1131.70 (unch), Silver at $14.57 (+0.20 %), WTI Oil at $44.40 (-0.02 %), Brent Oil at $47.38 (+0.03 %)
- Rates: US 10 year yield at 2.08, UK 10 year yield at 1.77, German 10 year yield at 0.59
News & Data:
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (w/e 27 Sep): 110.6 (prev 114.5)
- PBOC Fixes Yuan Reference Rate At 6.3660 (prev 6.3729)
- Fed’s Williams: Still Sees Liftoff Appropriate This Year — BBG
- Fed’s Williams: Econ Data Has Been At/Above Expectation For Liftoff — BBG
- Fed’s Williams: Don't Want To Be On Preset Time Table For Hikes
- Williams: US Economy Can Handle Rate Hike
- Williams: Expects Jobless Rate To Fall Below 5% Later This Year
- Asia shares skid to three-and-a-half-year lows on China anxiety – RTRS
Markets Update:
The risk-off theme remains present in the FX market, with the Japanese Yen and Swiss Franc bid overnight and the US Dollar & commodity currencies weaker. The Euro benefited from falling European equity markets and dovish comments from FOMC member Evans helped EUR/USD rise above 1.12. The pair extended gains in Asia, reaching a high of 1.1265 earlier. Meanwhile, the British Pound remains surprisingly weak and is consolidating around 1.5160 support at the moment. A clear break lower would pave the way for a 1.5040 test. EUR/GBP has posted a fresh 3-month high as it broke above 0.7420 resistance. The next major obstacle for the pair will be 0.7480.
USD/JPY has been under pressure since the trading week started and was again offered in Asia. It fell to a low of 119.48 and further losses seem likely, with 119.00/05 the next major support area. Commodity currencies are suffering from the risk-off sentiment as well, with AUD & NZD the worst performing currencies overnight. AUD/USD fell to 0.6945 and traders are now keeping an eye on the 0.69 level, the current yearly low. NZD/USD is consolidating around 0.63 and support can be expected at 0.6240 and then 0.62.
Upcoming Events:
- 08:00 BST – Spanish CPI
- 13:00 BST – German CPI
- 15:00 BST – US CB Consumer Confidence
- 20:40 BST – Bank of Carney Governor Carney speaks
