Global Markets:
- Asian stock markets: Nikkei down 1.70 %, Shanghai Composite declined 2.10 %, Hang Seng fell 2.70 %, ASX 200 lost 2.10 %
- Commodities: Gold at $1332 (-0.20 %), Silver at $19.01 (-1.85 %), WTI Oil at $45.20 (-1.50 %), Brent Oil at $47.40 (-1.30 %)
- Rates: US 10 year yield at 1.67, UK 10 year yield at 0.86, German 10 year yield at -0.02
News & Data:
- Japan PPI (MoM) Aug: -0.3% (est -0.1% prev 0.0%)
- Japan PPI (YoY) Aug: -3.6% (est -3.4% prev 3.9%)
- Japan Machine Tool Orders (MoM) Aug: 4.9% (est -2.9% prev 8.3%)
- Japan Machine Tool Orders (YoY) Aug: 5.2% (est 0.3% prev -0.9%)
- PBoC Fixes Yuan at 6.6908 (prev 6.6684)
- BoJ to Weigh Different Approach, But Markets Wonder What Next — Nikkei
- Fed's Kaplan: Progress Toward Full Employment, Lagging On Meeting Inflation Target
- Fed's Kashkari: Monetary Policy 'Largely Doing What It Can' To Support Robust Recovery — RTRS
CFTC Positioning Data:
- EUR 93K short versus 82K short last week
- GBP 90K short versus 92K short last week
- JPY 54K long versus 64K long last week
- CHF 1.4K long versus 8K long last week
- CAD 21K long versus 22K long last week
- AUD 39K long versus 43K long last week
- NZD 6.1K long versus 1.8 K long last week
Markets Update:
Asian stock markets are all lower, with Chinese and Australian markets down more than 2 % on the day, as rates rose sharply on Friday and investors see an increased chance of a Federal Reserve rate hike this month. As a reminder, the Fed will announce its decision on September 21st.
The FX market was rather quiet overnight, despite decent volatility in the equities and commodities. EUR/USD opened around 1.1225 in Asia and rose to a high of 1.1250. GBP/USD started the new trading day at 1.3260 and traded in a 1.3250-75 range. USD/JPY consolidated between 102.60 and 102.30 and remained surprisingly bid, despite larger losses in the Nikkei index.
AUD/USD opened at 0.7540 and traded in a 0.7520-50 range overnight. Similar price action was seen in NZD/USD, which consolidated between 0.7315-45.
There are no major data releases or events scheduled for today, so it could remain quiet. This week’s main events will be UK inflation & unemployment data, the SNB and BOE rate decision and US inflation data. For further details, please see the calendar below.
Upcoming Events:
- 14:30 BST – UK CB Leading Index
The Week Ahead:
Tuesday, September 13th
- 02:30 BST – Australia NAB Business Confidence
- 03:00 BST – Chinese Industrial Production
- 03:00 BST – Chinese Retail Sales
- 07:00 BST – German CPI
- 08:15 BST – Swiss PPI
- 09:00 BST – Italian Industrial Production
- 09:30 BST – UK CPI
- 10:00 BST – German ZEW Economic Sentiment
- 10:00 BST – Euro Zone ZEW Economic Sentiment
- 23:45 BST – New Zealand Current Account
Wednesday, September 14th
- 01:30 BST – Australia Westpac Consumer Sentiment
- 05:30 BST – Japanese Industrial Production
- 07:45 BST – French CPI
- 09:00 BST – Italian CPI
- 09:30 BST – UK Unemployment Rate
- 09:30 BST – UK Claimant Count Change
- 09:30 BST – UK Average Earnings
- 10:00 BST – Euro Zone Industrial Production
- 15:30 BST – US Crude Oil Inventories
- 23:45 BST – New Zealand GDP
Thursday, September 15th
- 02:00 BST – Australia MI Inflation Expectations
- 02:30 BST – Australia Employment Change
- 02:30 BST – Australia Unemployment Rate
- 06:00 BST – Singapore Retail Sales
- 08:30 BST – SNB Rate Decision
- 09:30 BST – UK Retail Sales
- 10:00 BST – Euro Zone CPI
- 10:00 BST – Euro Zone Trade Balance
- 12:00 BST – Bank of England Rate Decision
- 13:30 BST – US Retail Sales
- 13:30 BST – US Current Account
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – Philadelphia Fed Manufacturing Index
- 13:30 BST – US PPI
- 14:15 BST – US Industrial Production
- 14:15 BST – US Manufacturing Production
Friday, September 16th
- 09:00 BST – Italian Trade Balance
- 13:30 BST – US CPI
- 15:00 BST – US Michigan Consumer Sentiment
