Friday 9th September: European Open Briefing

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Friday 9th September: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei up 0.15 %, Shanghai Composite gained 0.05 %, Hang Seng rallied 1.00 %, ASX 200 declined 0.80 %
  • Commodities: Gold at $1342 (+0.10 %), Silver at $19.69 (+0.10 %), WTI Oil at $47.20 (-0.80 %), Brent Oil at $49.50 (-0.95 %)
  • Rates: US 10 year yield at 1.60, UK 10 year yield at 0.77, German 10 year yield at -0.06

News & Data:

  • Bank of Korea keeps rates unchanged at 1.25%
  • China CPI (YoY, Aug): 1.30% (est 1.70%, prev 1.80%)
  • China CPI (MoM, Aug): 0.10% (est 0.30%, prev 0.20%)
  • China PPI (YoY, Aug): -0.80% (est -0.90%, prev -1.70%)
  • Australia Housing Finance (MoM, Jul): -4.20% (est -1.50%, prev rev 1.70%)
  • New Zealand Card Spending Retail Sales (MoM, Aug): -0.40% (prev rev 0.20%)
  • New Zealand Card Spending Retail Sales (YoY, Aug): 3.70% (prev 5.80%)
  • Japan M3 Money Stock (YoY, Aug): 2.80% (est 2.90%, prev 2.90%)
  • Japan M2 Money Stock (YoY, Aug): 3.30% (est 3.30%, prev 3.30%)
  • Japan Tertiary Industry Activity Index (MoM, Jul): 0.30% (est 0.40%, prev rev to 0.70% from 0.80%)
  • PBOC fixes yuan @ 6.6684 (prev fix 6.6620, prev close 6.6650)
  • Oil pulls back after big jump on U.S. crude stock draw – RTRS
  • Dollar off overnight highs, on track for weekly losses – RTRS
  • China's Aug inflation trends point to stabilizing economy – RTRS
  • Asian shares slip on North Korea nuclear test reports, ECB disappointment – RTRS

Markets Update:

The Euro is back to where it was before the ECB meeting as the central bank did not reveal a lot of new information. EUR/USD briefly rallied to 1.1330 as the ECB decided to keep rates and the size & duration of their QE programme unchanged, but it quickly reversed and eventually fell back to 1.1240 into the NY close. In Asia, the pair recovered and rose to a high of 1.1285.

GBP/USD bounced along with the Euro and rose to a high of 1.3335. The Pound remains resilient overall, as recent UK economic data has been better than expected by many market participants.

The Yen gained overnight, as news of a North Korea nuclear test led to a slight risk-off sentiment in markets. USD/JPY declined from 102.50 in the early Asian session to a low of 102.00.

Commodity currencies are almost unchanged on the day. AUD/USD traded in a 0.7635-55 range overnight, while NZD/USD consolidated between 0.7390 and 0.7410.

The main events today will be UK trade data at 09:30 BST and Canadian employment data at 13:30 BST.

Upcoming Events:

  • 06:45 BST – Swiss Unemployment Rate
  • 07:00 BST – German Trade Balance
  • 07:45 BST – French Industrial Production
  • 09:30 BST – UK Trade Balance
  • 13:15 BST – Canada Housing Starts
  • 13:30 BST – Canada Employment Change
  • 13:30 BST – Canada Unemployment Rate
  • 20:30 BST – CFTC Positioning Data

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