Thursday 8th September: European Open Briefing

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Global Markets:

  • Asian stock markets: Nikkei down 0.90 %, Shanghai Composite fell 0.05 %, Hang Seng rallied 0.30 %, ASX 200 declined 1.00 %
  • Commodities: Gold at $1351 (+0.15 %), Silver at $19.96 (+0.50 %), WTI Oil at $46.20 (+0.15 %), Brent Oil at $48.60 (+1.30 %)
  • Rates: US 10 year yield at 1.53, UK 10 year yield at 0.68, German 10 year yield at -0.12

News & Data:

  • China Trade Balance (USD) (Aug): 52.05bn (est 58.00bn, prev 52.31bn)
  • China Exports (YoY, Aug): -2.80% (est -4.00%, prev -4.40%)
  • China Imports (YoY, Aug): +1.50% (est -4.90%, prev -12.50%)
  • Japan GDP Annualised SA (QoQ, Q2 F): 0.70% (est 0.20%, prev 0.20%)
  • Japan Adjusted Current Account (JPY) (Jul): 1447.8bn (est 1573.7bn, prev 1648.4bn)
  • Japan Current Account NSA (JPY) (Jul): 1938.2bn (est 2090bn, prev 974.4bn)
  • Japan Trade Balance BOP Basis (Jul) 613.9bn (est 571.2bn, prev 763.6bn)
  • Australia Trade Balance (Jul): -2.41bn (est -2.75bn, prev -3.195bn)
  • New Zealand ANZ Inflation (MoM, Aug): +0.10% (prev -0.30%)
  • UK RICS House Price Balance (Aug): +12 (est +6, prev +5)
  • PBOC fixes yuan @ 6.6620 (prev fix 6.6555, prev close 6.6610)
  • BoJ's Nakaso: Depending on growth and inflation, further measures must still be deemed as necessary — RTRS

Markets Update:

EUR/USD was quiet overnight as traders are waiting for the ECB rate decision today at 12:45 BST. The central bank is expected to keep rates unchanged, but there are speculations that it may extend its QE programme. President Draghi will hold a press conference at 13:30 BST. EUR/USD traded 1.1235-60 in Asia.

GBP/USD started the day around 1.3330 and made it to a high of 1.3360 after the Tokyo open. The commodity currencies are slightly up on the day, with AUD/USD rising from 0.7665 to 0.7685 and NZD/USD climbing from 0.7445 to 0.7475. USD/CAD saw high volatility yesterday amid a Bank of Canada rate announcement and a surprise in API oil inventory data. The rally in Oil pushed USD/CAD lower and it fell from 1.29 to 1.2865 in Asia.

USD/JPY rallied from 101.65 to 101.85 ahead of the Tokyo open, but was unable to sustain momentum and eventually fell back to 101.40.

Upcoming Events:

  • 12:45 BST – ECB Rate Decision
  • 13:30 BST – ECB President Draghi speaks
  • 13:30 BST – US Initial Jobless Claims
  • 15:00 BST – US Crude Oil Inventories

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