Thursday 25th August: European Open Briefing

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Thursday 25th August: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei down 0.10 %, Shanghai Composite lost 1.10 %, Hang Seng declined 0.05 %, ASX 200 fell 0.30 %
  • Commodities: Gold at $1329 (-0.05 %), Silver at $18.60 (+0.25 %), WTI Oil at $46.85 (+0.15 %), Brent Oil at $49.05 (+0.05 %)
  • Rates: US 10 year yield at 1.56, UK 10 year yield at 0.55, German 10 year yield at -0.09

News & Data:

  • Japan Services PPI (YoY) Jul: 0.4% (est 0.1%, prev 0.2%)
  • PBOC Fixes Yuan Reference Rate at 6.6602 (prev 6.6420)
  • Asia stocks mark time before Yellen speech; dollar firm – RTRS
  • Oil prices fall as market focus returns to global supply overhang – RTRS
  • Dollar edges up vs. yen as Yellen's Jackson Hole speech awaited – RTRS

Markets Update:

The US Dollar rose slightly overnight and most of the gains have been made against the Japanese Yen. The market is waiting for the speech of Fed Chair Yellen tomorrow and whether there will be any hints about a possible rate hike this year.

USD/JPY opened around 100.40 in Asia and made it to a high of 100.60 later in the session. The pair declined ahead of the Nikkei open, but was able to reverse losses and traded mostly around 100.50 for the rest of the session. Key resistance is seen at 101.15/20, while support is noted at 100.00 and 99.55.

EUR/USD traded 1.1260-75 overnight, while GBP/USD was slightly more volatile than usual in the Asian session. The pair rose from 1.3230 to 1.3265 ahead of the Tokyo open, but ran into decent resistance there and fell to a fresh session low of 1.3218 later in the session.

The commodity currencies are slightly up on the day. AUD/USD rallied from 0.7605 to 0.7630, while NZD/USD made it from 0.7300 to 0.7335 before declining back to 0.7315.

Upcoming Events:

  • 08:00 BST – Spanish GDP
  • 08:30 BST – Swedish Unemployment Rate
  • 09:00 BST – German IFO Business Climate
  • 09:00 BST – German IFO Business Expectations
  • 13:00 BST – Jackson Hole Symposium starts
  • 13:30 BST – US Durable Goods Orders
  • 13:30 BST – US Initial Jobless Claims
  • 14:45 BST – US Services PMI
  • 16:00 BST – KC Fed Manufacturing Index

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