Markets Overview:
- Equities: Nikkei 225 (-0.93 %), Hang Seng (+1.54 %), CSI 300 (+0.54 %), S&P/ASX 200 (-0.38 %)
- Commodities: Crude Oil $46.80 (+0.02 %), Brent Oil $49.69 (-0.32 %), Natural Gas $2.63 (+0.31 %), Gold $1352.17 (+0.26 %), Copper $218.00 (+0.76 %)
What traders are talking about:
Dollar declines as Fed divided
The Greenback came under renewed pressure overnight after the Fed meeting minutes showed that the FOMC was divided over the pace of its tightening path. Some members favour another rate hike soon, but others prefer to wait for further evidence that inflation is moving towards the bank's 2 % target.
MoF warns about JPY strength...again
The Japanese Ministry of Finance warned again that it is monitoring the FX market closely and that it will act on excessive FX moves. It is unlikely that those comments have much of an impact on markets, as they get repeated daily. If Japanese officials want to prevent further JPY strengthening, they will need to act instead of counting on verbal intervention. USD/JPY fell to a low of 99.64 overnight, but was able to recover from there and is trading above 100.00 as we are heading into the EU open.
Strong Aussie jobs numbers
Employment change for July arrived at +26.2k vs. an expected +11k, while the unemployment rate fell from 5.8 % to 5.7 % (the market expected it to remain unchanged). AUD/USD climbed from 0.7650 to 0.7718 after the release. What probably prevented a larger rally is the fact that full-time jobs declined by 45k (the largest fall since 2003), and that it was the part-time jobs (+71.6k) that drove employment higher.
PBoC sets Yuan fix at 6.6273
China's central bank set today's USD/CNY reference rate at 6.6273 (vs. 6.6056 yesterday). The offshore Yuan rallied from 6.6240 to 6.6360 overnight.
Economic Calendar:
- 09:30 BST - UK Retail Sales
- 10:00 BST - Euro Zone CPI
- 12:30 BST - ECB Meeting Minutes
- 13:30 BST - US Initial Jobless Claims
- 13:30 BST - US Philadelphia Fed Manufacturing Index
- 15:00 BST - US CB Leading Index
- 15:05 BST – Fed’s Dudley speaks
- 21:00 BST – Fed’s Williams speaks
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