Wednesday 14th September: European Open Briefing

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Global Markets:

  • Asian stock markets: Nikkei down 0.40 %, Shanghai Composite fell 0.55 %, Hang Seng gained 0.30 %, ASX 200 rose 0.40 %
  • Commodities: Gold at $1324 (+0.05 %), Silver at $19.04 (+0.35 %), WTI Oil at $45.15 (+0.55 %), Brent Oil at $47.30 (+0.40 %)
  • Rates: US 10 year yield at 1.74, UK 10 year yield at 0.91, German 10 year yield at 0.07

News & Data:

  • Japan Industrial Production (MoM) Jul, F: -0.4% (flash 0.0%)
  • Japan Industrial Production (YoY) Jul, F: -4.2% (flash -3.8%)
  • Australia Westpac Consumer Confidence Index (Sep): 101.4 (prev 101)
  • New Zealand REINZ House Sales (YoY) Aug: -3.1% (prev -10.1%)
  • New Zealand BoP Current Account Balance (Q2): NZD -0.945 Bln (est NZD -0.295 Bln prev NZD 1.306 Bln)
  • BoJ to Explore Delving Deeper Into Negative Rates — Nikkei

Markets Update:

USD/JPY continued its rally after the Nikkei reported that the BoJ is considering cutting rates even further into negative territory. USD/JPY rallied to a high of 103.20 overnight and is up almost 200 pips from yesterday's low. Resistance is expected at 103.80, but the major obstacle for now is 104.30 (early September high).

The Euro was quiet overnight and traded in a 1.1210-30 range. The Pound declined yesterday, following weaker than expected UK CPI data. GBP/USD reached a low of 1.3160, but found support there overnight and bounced back to 1.32.

The commodity currencies caught a bid overnight. AUD/USD rose from 0.7440 to a high of 0.7490, while NZD/USD rallied from 0.7230 to 0.7270.

Upcoming Events:

  • 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

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