Global Markets:
- Asian stock markets: Nikkei up 0.25 %, Shanghai Composite fell 0.60 %, Hang Seng declined 0.30 %, ASX lost 0.25 %
- Commodities: Gold at $1338 (-0.60 %), Silver at $18.90 (-2.10 %), WTI Oil at $48.50 (-1.20 %), Brent Oil at $50.15 (-1.40 %)
- Rates: US 10 year yield at 1.60, UK 10 year yield at 0.62, German 10 year yield at -0.03
News & Data:
- PBOC Fixes Yuan Reference Rate at 6.6652 (prev 6.6211)
- BoJ's Kuroda: Won’t rule out deepening negative rate cut – Sankei
- Iraq Will Boost Oil Exports After Agreement on Kirkuk Fields – BBG
- Asian shares slip, dollar stands tall on Fed hike bets – RTRS
- Oil falls as August price rally seen overblown, China fuel exports jump – RTRS
- Fed close to hitting job and inflation targets: Fischer – RTRS
CFTC Positioning Data:
- EUR 93K short versus 98K short last week
- GBP 94K short versus 90K short last week
- JPY 56K long versus 49K long last week
- CHF 1.5K short versus 0.1K long last week
- CAD 12K long versus 15K long last week
- AUD 41K long versus 35K long last week
- NZD 0.7K short versus 0.6K short last week
Markets Update:
The US Dollar gained against most major currencies overnight, following hawkish comments from Fed member Fischer. EUR/USD opened around 1.1320, mostly unchanged from Friday's close, and declined to 1.1270 overnight. GBP/USD fell from 1.3080 to 1.3035. The Pound came under pressure on Friday after news emerged that the UK will trigger Article 50 (required for a Brexit) as soon as April of next year.
USD/JPY started the new trading week at 100.40, slightly higher than Friday's close of 100.20. It extended gains later in the session, reaching 100.85.
Commodity currencies were under pressure too, with AUD/USD falling from 0.7630 to 0.7585 and NZD/USD declining from 0.7265 to 0.7215. The Canadian Dollar reversed as well, as the rally in Oil paused. USD/CAD rose from 1.2875 in the early Asian session to a high of 1.2925 so far.
Upcoming Events:
- 13:30 BST – Canadian Wholesale Sales
- 13:30 BST – US Chicago Fed National Activity Index
The Week Ahead:
Tuesday, August 23rd
- 08:00 BST – French Manufacturing PMI
- 08:00 BST – French Services PMI
- 08:30 BST – German Manufacturing PMI
- 08:30 BST – German Services PMI
- 09:00 BST – Euro Zone Manufacturing PMI
- 09:00 BST – Euro Zone Services PMI
- 11:00 BST – UK CBI Industrial Trends Orders
- 14:45 BST – US Markit Manufacturing PMI
- 15:00 BST – US New Home Sales
- 15:00 BST – US Richmond Manufacturing Index
- 15:00 BST – Euro Zone Consumer Confidence
- 23:45 BST – New Zealand Trade Balance
Wednesday, August 24th
- 02:30 BST – Australian Construction Work Done
- 07:00 BST – German GDP
- 14:00 BST – UK House Price Index
- 15:00 BST – US Existing Home Sales
- 15:30 BST – US Crude Oil Inventories
Thursday, August 25th
- 01:00 BST – Singapore GDP
- 02:30 BST – Australian Private Capex
- 08:00 BST – Spanish GDP
- 09:00 BST – German IFO Business Climate
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – US Durable Goods Orders
- 14:45 BST – US Services PMI
Friday, August 26th
- 00:30 BST – Japan National CPI
- 00:30 BST – Tokyo CPI
- 07:00 BST – German GfK Consumer Climate
- 09:00 BST – Euro Zone M3 Money Supply
- 09:30 BST – UK GDP
- 13:30 BST – US GDP
- 15:00 BST – US Michigan Consumer Confidence
