MORNING BRIEFING: Stronger ISM data boosts risk appetite; ECB decision today

[RTFX-Trading]

MORNING BRIEFING: Stronger ISM data boosts risk appetite; ECB decision today

What’s new:
Forex: Upbeat data from US boosts risk appetite, dollar on defensive
Australia: Trade surplus below expectations  
Japan: Political uncertainty keeps intervention risks high
Asia: Nikkei climbs 1.5 percent, further away from 16-month low
Commodities: Oil slips, gold inches up as outlook remains gloomy
Euro zone: ECB decision today, rates to remain at 1 percent; may extend lending support
United States: Stronger than expected ISM manufacturing data

Today:


Asian Rates & Indices:
EURUSD: 1.2821 - 1.2782.
USDCHF: 1.0186 - 1.0108.
GBPUSD: 1.5464 - 1.5394.
EURJPY: 108.26 – 107.51.
USDJPY: 84.55 – 84.08.
DowJones: 10'269.47 +2.54%
NASDAQ: 2'176.84 +2.97%
S & P 500: 1'080.29 +2.95%
Nikkei: 9’062.84 +1.52%
Shanghai: 2'650.10 +1.04%
Gold: $ 1'248.30
Crude Oil: $ 73.95

Comments:

The dollar was on the back foot on Thursday, retaining most of the losses sustained the previous day when better than expected data helped boost risk appetite and lure investors away from safe-haven currencies and assets.

Figures published on Wednesday showed the US manufacturing sector grew faster than expected and China's factory output regained momentum in August, while Australia's economy expanded at its fastest pace in three years in the second quarter, which eased investor worries about the global economy.

That lifted stocks, commodities and higher-yielding currencies. Japan's Nikkei average rose 1.5 percent on Thursday, moving further above from a 16-month low touched the previous day.
 
However investors have been hesitant to take fresh positions ahead of the European Central Bank's policy meeting later in the day and Friday's monthly US jobs report. The ECB is seen keeping its benchmark rates at 1.0 percent at Thursday's meeting. It is also expected to extend lending support for banks despite raising its economic growth forecasts as it seeks to balance a multi-speed recovery among the 16 countries in the euro zone.

Good Day,

Emman Xuereb
Trading Desk
RTFX Ltd
Risk Disclaimer