Global Markets:

  • Asian stock markets: Nikkei down 0.97 %, Shanghai Composite rose 0.18 %, Hang Seng lost 0.39 %, ASX 200 fell 0.28 %
  • Commodities: Gold at $1339.26 (+0.67 %), Silver at $17.92 (+0.59 %), WTI Oil at $47.44 +(0.32 %), Brent Oil at $52.52 (-0.44 %)
  • Rates: US 10-year yield at 2.16, UK 10-year yield at 1.06, German 10-year yield at 0.38

News & Data:

  • AUD Company Operating Profits q/q -4.5 % vs -3.9 % expected
  • CNY Caixin Manufacturing PMI 51.6 vs 50.9 expected
  • EUR Spanish Manufacturing PMI 52.4 vs 54.4 expected
  • GBP Manufacturing PMI 56.9 vs 55.0 expected
  • USD Average Hourly Earnings m/m 0.1 % vs 0.2 % expected
  • USD Non-Farm Employment Change 156 K vs 180 K expected
  • USD Unemployment Rate 4.4 % vs 4.3 % expected
  • USD ISM Manufacturing PMI 58.8 vs 56.5 expected
  • USD Revised UoM Consumer Sentiment 96.8 vs 97.4 expected
  • Japan PM Abe Says Aim to Increase Missile Defence Capabilities – RTRS
  • Oil markets volatile in wake of Hurricane Harvey, North Korea nuclear test – RTRS

CFTC Positioning Data:

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  • EUR long 87K vs 88K long last week. Longs decreased by 1K
  • GBP short 52K vs 46K short last week. Shorts increased 6K
  • JPY short 69K vs 74K short last week. Shorts trimmed by 5K
  • CHF short 2K vs 2K short last week. Unchanged from prior week.
  • CAD long 53K vs 51K long. Longs increased by 2K.
  • AUD long 67k vs 60k last week. Longs increased by 7K
  • NZD long 19K vs 22K long last week. Longs trimmed by 3K

Markets Update:

Asian equities fell early on Monday as market participants turned to haven assets after North Korea’s latest nuclear test on Sunday sending the yen, gold and Sovereign bonds higher. Following this, U.S. President Trump threatened to increase economic sanctions and halt trade with any nation doing business with Kim Jong Un’s regime

USD/JPY dropped around a big figure from late Friday levels falling as deep as 109.22 early on Monday, currently the pair is seen trading around 109.80 as there were no follow through selling after the inirial drop. Overall the yen has climbed 0.4 percent against the US dollar. Japan is the world’s largest creditor nation and traders tend to assume Japanese investors would repatriate funds at times of crisis, thus pushing up the yen

EURUSD opened a few points net higher for the session and is currently seen trading at 1.8820, overall the Euro has climbed 0.2 percent against the US Dollar. The investors are wary ahead of a European Central Bank meeting on Thursday as there have been reports some at the ECB are unhappy with the euro’s strength. The Dollar Index slipped 0.1 percent and currently trading at 92.68.

AUDUSD has recovered from its early losses and is currently seen trading back around 0.7962. Earlier on Monday, the Australian dollar had lost 0.2 percent against the US Dollar dropping to lows of 0.7946. On the other side, the kiwi has strengthened against the US Dollar following a minor drop earlier in the session, Currently the NZDUSD is seen trading at 0.7175 gaining 30+ pips from today’s opening.

Upcoming Events:

  • USD Bank Holiday
  • CAD Bank Holiday
  • 07:00 GMT – (EUR) Spanish Unemployment Change
  • 08:30 GMT – (GBP) Construction PMI
  • 11:30 GMT – (GBP) BRC Retail Sales Monitor y/y​

The Week Ahead:

Tuesday, September 5th

  • 01:30 GMT – (AUD) Current Account
  • 04:30 GMT – (AUD) Cash Rate
  • 04:30 GMT – (AUD) RBA Rate Statement
  • 07:15 GMT – (CHF) CPI m/m
  • 08:30 GMT – (GBP) Services PMI
  • 09:10 GMT – (AUD) RBA Gov Lowe Speaks
  • 12:00 GMT – (USD) FOMC Member Brainard Speaks
  • 14:00 GMT – (USD) Factory Orders m/m
  • 17:10 GMT – (USD) FOMC Member Kashkari Speaks
  • 22:05 GMT – (USD) FOMC Member Kaplan Speaks

Wednesday, September 5th

  • 01:30 GMT – (AUD) GDF q/q
  • 12:30 GMT – (CAD) Trade Balance
  • 12:30 GMT – (CAD) Labor Productivity q/q
  • 12:30 GMT – (USD) Trade Balance
  • 14:00 GMT – (CAD) BOC Rate Statement
  • 14:00 GMT – (CAD) Overnight Rate
  • 14:00 GMT – (USD) ISM Non-Manufacturing PMI

Thursday, September 6th

  • 01:30 GMT – (AUD) Retail Sales m/m
  • 01:30 GMT – (AUD) Trade Balance
  • 07:30 GMT – (GBP) Halifax HPI m/m
  • 11:45 GMT – (EUR) Minimum Bid Rate
  • 12:30 GMT – (CAD) Building Permits m/m
  • 12:30 GMT – (EUR) ECB Press Conference
  • 12:30 GMT – (USD) Unemployment Claims
  • 14:00 GMT – (CAD) Ivey PMI
  • 15:00 GMT – (USD) Crude Oil Inventories
  • 23:00 GMT – (USD) FOMC Member Dudley Speaks
  • 23:50 GMT – (JPY) Final GDP q/q

Friday, September 7th

  • Tentative– (CNY) Trade Balance
  • 03:00 GMT – (AUD) RBA Assist Gov Debelle Speaks
  • 08:30 GMT – (AUD) RBA Gov Lowe Speaks
  • 08:30 GMT – (GBP) Manufacturing Production m/m
  • 08:30 GMT – (GBP) Goods Trade Balance
  • 12:30 GMT – (CAD) Employment Change
  • 12:30 GMT – (CAD) Unemployment Rate
  • 12:45 GMT – (USD) FOMC Member Harker Speaks

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