Global Markets:
- Asian stock markets: Nikkei up 0.60 %, Shanghai Composite fell 0.60 %, Hang Seng gained 0.30 %, ASX rose 0.70 %
- Commodities: Gold at $1121 (-0.20 %), Silver at $15.39 (-0.60 %), WTI Oil at $43.38 (+0.20 %), Brent Oil at $50.35 (+0.25 %)
- Rates: US 10 year yield at 2.17, UK 10 year yield at 1.80, German 10 year yield at 0.61
News & Data:
- Japan Machine Orders (MoM) Jun: -7.9% (Exp -4.8% prev 0.6%)
- Japan Machine Orders (YoY) Jun: 16.6% (Exp 17.6% prev 19.3%)
- UK RICS House Price Balance (Jul): 44% (exp 42% prev 40%)
- New Zealand REINZ House Sales (YoY) Jul: 37.8% (prev 29.2%)
- New Zealand Manufacturing PMI (Jul): 53.5 (prev rev 55.1)
- Australia Consumer Inflation Expectations (Aug): 3.7% (prev 3.4%)
- Japan Government Advisor Hamada: BoJ May Ease If China Move Hits External Demand Too Much
- PBOC Fixes Yuan Reference Rate At 6.4010 (prev 6.3306)
- PBOC's Yi: Reports that PBOC wants to devalue Yuan by 10 % are nonsense
- PBOC's Yi: PBOC will step in when market is distorted
Markets Update:
The US Dollar regained some strength after weakening yesterday against all major currencies. EUR/USD reached 1.1213, last month’s high, but failed to break above. The pair retraced then, with selling pressure increasing at the Tokyo open. EUR/USD eventually hit a session low of 1.1130. Key support now seen at 1.1080 and then 1.1000/10, while to the topside 1.1213 and 1.1275 rare the key levels to watch.
USD/JPY had a sharp decline from the 125.30 high posted yesterday, but found support at 123.80 and bounced from there along with the S&P 500, which ended up with a positive daily close. While 125.30 is now key resistance, offers are reported at 124.50 and in front of the 125.00 level.
The Chinese central bank put the CNY fix at 6.4010 vs 6.3306 previously, but said that there is no basis for further devaluation of the Yuan.
Upcoming Events:
- 07:00 BST – German CPI
- 07:45 BST – French CPI
- 08:00 BST – Spanish CPI
- 08:15 BST – Swiss CPI
- 08:30 BST – Swedish CPI
- 11:30 BST – FOMC Member Dudley speaks
- 12:30 BST – ECB Meeting Minutes
- 13:30 BST – US Retail Sales
- 13:30 BST – US Initial Jobless Claims
- 23:45 BST – New Zealand Retail Sales
