Global Markets:
Asian stock markets: Nikkei up 2.35 %, Shanghai Composite gained 0.05 %, Hang Seng fell 0.40 %, ASX 200 lost 1.10 %
Commodities: Gold at $1320 (-0.40 %), Silver at $18.45 (-1.15 %), WTI Oil at $47.00 (-1.40 %), Brent Oil at $49.55 (-1.25 %)
Rates: US 10 year yield at 1.62, UK 10 year yield at 0.57, German 10 year yield at -0.07
News & Data:
AUS HIA New Home Sales (Jul, MoM): -9.70% (prev 8.20%)
PBOC fixes yuan at 6.6856 (vs prev fix 6.6488, prev close 6.669)
ECB's Coeure says interest rates could stay low if other policy areas don't contribute
Nomura: USDJPY is a buy-on-dips until NFP on Friday
BoK: South Korea economy to see mild improvement, driven by services and domestic consumption –RTRS
Fed's Yellen sees stronger case for interest rate hike – RTRS
CFTC Positioning Data:
EUR 77K short versus 93k short last week
GBP 95K short versus 94K short last week
JPY 60K long versus 56K long last week
CHF 1.8K long versus 1.5K long last week
CAD 17K long versus 12K long last week
AUD 43K long versus 41K long last week
NZD 0.9K short vs 0.7K short last week
Markets Update:
The US Dollar extended gains overnight following comments from Fed Chair Yellen on Friday that the case for an interest rate hike has become stronger. EUR/USD started the new trading week at 1.1190 and consolidated between 1.1175 and 1.1205 for the rest of the session. GBP/USD traded in a 1.3110-40 range. USD/JPY saw slightly higher volatility; the pair opened at 101.90 and rallied to a high of 102.25 after the Tokyo open.
AUD/USD opened at 0.7560 in Sydney and came under renewed pressure, declining to a low of 0.7525 later in the session. NZD/USD initially followed the AUD lower, but was able to bounce off 0.7210 and rallied to a high of 0.7245 earlier.
Today’s EU session could be quiet amid a lack of data and UK markets closed for a bank holiday.
Upcoming Events:
09:00 BST – Italian Consumer Confidence
13:30 BST – US Core PCE Price Index
13:30 BST – US Personal Spending
13:30 BST – US Personal Income
14:30 BST – Fed Chair Yellen speaks
15:30 BST – Dallas Fed Manufacturing Business Index
The Week Ahead:
Tuesday, 30th August
00:30 BST – Japan Household Spending
00:30 BST – Japan Retail Sales
00:30 BST – Japan Unemployment Rate
02:30 BST – Australia Building Approvals
07:00 BST – German Import Price Index
08:00 BST – Spanish CPI
10:00 BST – Euro Zone Consumer Confidence
13:00 BST – German CPI
15:00 BST – US CB Consumer Confidence
Wednesday, 31th August
00:50 BST – Japan Industrial Production
02:00 BST – New Zealand ANZ Business Confidence
02:00 BST – RBA Assistant Governor Debelle speaks
02:30 BST – Australia Private Sector Credit
07:00 BST – German Retail Sales
07:45 BST – French CPI
08:55 BST – German Unemployment Rate
09:00 BST – Norway GDP
10:00 BST – Italian CPI
10:00 BST – Euro Zone CPI
13:15 BST – US ADP Nonfarm Employment Change
13:30 BST – Canadian GDP
14:45 BST – US Chicago PMI
15:00 BST – US Pending Home Sales
15:30 BST – US Crude Oil Inventories
Thursday, September 1st
00:30 BST – Australia AIG Manufacturing Index
02:00 BST – China Manufacturing PMI
02:00 BST – China Non-Manufacturing PMI
02:30 BST – Australia Private New Capex
02:30 BST – Australia Retail Sales
02:45 BST – China Caixin Manufacturing PMI
03:00 BST – Japan Manufacturing PMI
08:15 BST – Swiss Retail Sales
08:45 BST – Italian Manufacturing PMI
08:50 BST – French Manufacturing PMI
08:55 BST – German Manufacturing PMI
09:00 BST – Euro Zone Manufacturing PMI
09:30 BST – UK Manufacturing PMI
13:30 BST – US Initial Jobless Claims
14:45 BST – US Markit Manufacturing PMI
15:00 BST – US ISM Manufacturing PMI
17:00 BST – ECB's Nowotny speaks
17:25 BST – FOMC Member Mester speaks
Friday, September 2nd
09:00 BST – Italian GDP
09:30 BST – UK Construction PMI
13:30 BST – US NFP
13:30 BST – US Unemployment Rate
13:30 BST – US Average Hourly Earnings
13:30 BST – Canadian Trade Balance
15:00 BST – US Factory Orders
18:00 BST – FOMC Member Lacker speaks
20:30 BST – CFTC Positioning Data