Asia Recap
NIKKEI
14,760.10
-39.05
-0.26%
HANG SENG
23,207.00
+82.01
+0.35%
S&P/ASX 200
5,307.06
+12.61
+0.24%
News Events
Actual
Forecast
JPY National Core CPI y/y
0.8%
0.7%
JPY Tokyo Core CPI y/y
0.2%
0.3%
Headlines
Yen Advances as Aso Damps Bets on Corporate-Tax Cut; Pound Gains — Bloomberg — The yen advanced, heading for its second weekly gain versus the dollar, after comments by Japan’s Finance Minister Taro Aso damped bets the government will cut corporate taxes, boosting demand for the currency as a haven. The yen reversed yesterday’s drop against the U.S. currency as Aso said a reduction needs to be considered from a medium- to long-term perspective. The pound strengthened toward an eight-month high against the dollar after Bank of England Governor Mark Carney told a U.K. newspaper he sees no case for further stimulus. South Korea’s won rose, set for its biggest monthly gain in almost two years.
Aussie Set for 1st Weekly Drop This Month on U.S. Shutdown Risk — Bloomberg — The Australian and New Zealand dollars headed for their first weekly declines this month against the greenback as the risk of a U.S. government shutdown cut demand for higher-yielding assets. The Aussie held a three-day loss before the Reserve Bank of Australia meets next week to set policy. Australia’s Treasurer said today the nation’s budget has worsened since last month. New Zealand’s central bank said in its annual report that the kiwi remains elevated, before revealing it bought a net NZ$1 million ($831,900) in August. The U.S. Congress has until the end of this month to agree on spending measures, with the country set to hit its borrowing limit next month.
Europe Recap
STOXX 50
2,908.32
-14.67
-0.50%
FTSE 100
6,524.47
-41.12
-0.63%
DAX
8,625.08
-39.02
-0.45%
News Events
Actual
Forecast
GBP Nationwide HPI m/m
0.9%
0.5%
EUR German Prelim CPI m/m
0.0%
EUR French Consumer Spending m/m
-0.4%
0.1%
CHF KOF Economic Barometer
1.53
1.46
EUR Italian 10-y Bond Auction
4.50|1.4
Headlines
Pound Advances on Report Carney Sees No Need for More Stimulus — Bloomberg — The pound advanced, approaching the highest level versus the dollar in eight months, after Bank of England Governor Mark Carney told a U.K. newspaper he sees no case for further stimulus. Sterling strengthened versus all but two of its 16 major peers as a gauge of U.K. consumer confidence climbed to the highest in almost six years in September and house prices rose for a fifth month. Carney told the Yorkshire Post the central bank would consider expanding its asset-purchase target, known as quantitative easing, should the economic recovery falter. U.K. government bonds were little changed, with 10-year gilts set for their biggest weekly advance since March.
UBS Cuts U.S. Dollar Recommendation to Neutral on Fed Decision — Bloomberg — UBS AG (UBSN), the world’s biggest wealth manager, is reducing its recommendation on the U.S. dollar versus the euro to neutral after the Federal Reserve opted to maintain its bond-buying program. “The U.S. dollar was the most favored currency among speculative investors, no doubt partially due to widely-held expectations of a Fed ‘taper,’” Chief Investment Officer Alexander Friedman wrote in his monthly letter to client advisers yesterday. “As these expectations are revised in the coming weeks, we believe it prudent to close our long position in the currency relative to the euro.”
Canadian Dollar Touches Week Low as U.S. Economy Shows Growth — Bloomberg — Canada’s dollar dropped to a more than one-week low after reports signaled a pickup in U.S. growth and the price of oil, the nation’s biggest export, traded at almost the weakest level since July. The Canadian dollar was little changed against its U.S. peer as American lawmakers remained deadlocked over the federal budget in a confrontation that risks a government shutdown on Oct. 1. The discount for crude oil sold by Canadian companies over the U.S. benchmark rose to its largest since February. “The Canadian dollar continues to be driven by factors outside its border,” said Adrian Miller, director of fixed-income strategies at GMP Securities LLC in New York. “The U.S. dollar is rebounding after a few sessions after this fiasco in Washington, and that’s weighing on all other currencies.”
Americans Reject by 61% Obama Demand for Clean Debt Vote — Bloomberg — Americans by a 2-to-1 ratio disagree with President Barack Obama’s contention that Congress should raise the U.S. debt limit without conditions. Instead, 61 percent say that it’s “right to require spending cuts when the debt ceiling is raised even if it risks default,” because Congress lacks spending discipline, according to a Bloomberg National Poll conducted Sept. 20-23. That sentiment is shared by almost three-quarters of Republicans, two-thirds of independents, and a plurality of Democrats. Just 28 percent of respondents backed Obama’s call for a clean bill that has no add-on provisions.
Today’s Session Highlights
A solely US focused news day today. Focus is around USD this morning and afternoon. All news releases as per the table below.
Forecast
Previous
5:45am
USD
FOMC Member Evans Speaks
8:30am
USD
Core PCE Price Index m/m
0.1%
0.1%
USD
FOMC Member Rosengren Speaks
USD
Personal Spending m/m
0.3%
0.1%
9:55am
USD
Revised UoM Consumer Sentiment
78.2
76.8
10:45am
USD
FOMC Member Evans Speaks
2:00pm
USD
FOMC Member Dudley Speaks
Sat Sep 28
10:00am
NZD
Daylight Saving Time Shift