MORNING BRIEFING: US Dollar under pressure as risk aversion eases.

[RTFX-Trading]

MORNING BRIEFING: US Dollar under pressure as risk aversion eases.

What’s new:
Australia: September meeting minutes reveal that RBA considering raising rates soon if recovery is sustained.
United Kingdom: House prices positive for first rise since 2007.
Euro zone: EU Monetary Affairs Commissioner Almunia warned against a premature withdrawal of fiscal policy stimulus.
United States: President Obama is sure US and China can avoid trade war.
United States: Obama says there is no need for second stimulus.
United States: Summers says that US acted responsibly in China tariff.

Today:


Overnight Rates and Indices:
EURUSD: 1.4647 – 1.4603.
USDCHF: 1.0359 – 1.0324.
GBPUSD: 1.6657 – 1.6567.
EURJPY: 133.38 – 132.79.
USDJPY: 91.21 – 90.79.
DowJones: 9'626.80 +0.22%.
NASDAQ: 2’091.78 +0.52%.
S&P 500: 1’049.34 +0.63%.
Nikkei: 10’217.60 +15.56%.
Shanghai: 3’034.97 +8.36%,
Gold: $998.37.
Crude Oil: $68.80.
 
Comments:

The Dollar remained under pressure during Asian trading as equity markets avoided major losses. EURUSD traded in the range of 1.4603 – 1.4647 and USDJPY in 90.79 – 91.21. Fed officials continue to calm market expectations for early implementation of exit strategies. The trade dispute continues to dominate headlines, however the market is gradually adjusting to this news and the rise in USDJPY suggests that investors do not see much risk that this issue goes out of control.

ECB Governing Council member, Wellink, cautioned that financial institutions are not "out of the woods yet" and warned that the crisis will eventually be more visible on financial institutions’ balance sheets. Industrial production fell -0.30% over a month in July against a consensus of -0.2%. There is still talk that SNB is in the market, however according to our sources this is very unlikely to happen any time before their scheduled meeting, when we will hear more about their plans regarding exchange rates.

Have a nice day.

Emman Xuereb
RTFX Ltd
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