MORNING BRIEFING: Tightening talks dismissed as US Dollar falls to new yearly low.

[RTFX-Trading]

MORNING BRIEFING: Tightening talks dismissed as US Dollar falls to new yearly low.

What’s new:
Japan: BOJ keep rates on hold.
Japan: New PM pledges major changes in government and growth model.
Euro zone: Inflation numbers in line with expectations, at 0.3% M/M.
United Kingdom: Unemployment increases to 7.9%.
United States: Home builder sentiment reaches highest since May 2008.
United States: Inflation higher than expected at 0.4% M/M versus an expected 0.3%.
Switzerland: SNB Meeting today, release due at 14:00 CET.

Today:


Overnight Rates and Indices:
EURUSD: 1.4767 – 1.4704.
USDCHF: 1.0326 – 1.0303.
GBPUSD: 1.6536 – 1.6469.
EURJPY: 134.36 – 133.59.
USDJPY: 91.22 – 90.84.
DowJones: 9'791.71 +1.12%.
NASDAQ: 2’133.15 +1.45%.
S&P 500: 1’068.76 +1.53%.
Nikkei: 10’443.80 +1.68%.
Shanghai: 3’055.05 +1.83%,
Gold: $1,023.60.
Crude Oil: $72.49.
 
Comments:

The US Dollar staged a minor rally yesterday as unconfirmed reports surfaced of an early start to FED tightening. However, these rumors were quickly dismissed by investors as the EURUSD rallied higher to 1.4767 in Asian trading as world equity markets continue to make fresh gains and risk appetite holds steady.

Inflation figures came in higher than expected from the US, while they were in line with expectations in the Euro zone. Industrial Production increased to 0.8% in August, in the US. Unemployment reached 7.9% in the UK against a consensus of 8%.

Today, markets will be looking at the SNB rate decision and following statement. The SNB is expected to keep rates unaltered; however comments about any FX interventions from the Swiss Central bank will be in focus. Weekly jobs data and housing starts are expected from the US at 14:30 CET, while retail sales numbers are due from the UK at 10:30 CET.

Have a nice day.

Emman Xuereb
RTFX Ltd
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