Global Markets:
- Asian stock markets: Nikkei up 0.10 %, Shanghai Composite gained 0.15 %, Hang Seng fell 0.50 %, ASX 200 lost 0.70 %
- Commodities: Gold at $1254 (-0.15 %), Silver at $17.43 (-0.05 %), WTI Oil at $50.20 (-0.35 %), Brent Oil at $51.90 (-0.15 %)
- Rates: US 10 year yield at 1.79, UK 10 year yield at 1.09, German 10 year yield at 0.07
News & Data:
- New Zealand Performance Services Index (Sept): 54.1 (prev 57.9)
- UK Rightmove House Prices MoM Oct: 0.90% (prev 0.70%)
- UK Rightmove House Prices YoY Oct: 4.20% (prev 4.00%)
- BOJ's Kuroda: Consumer prices likely to be slightly negative or around zero percent
- Kuroda: BOJ will continue expanding monetary base till CPI stably exceeds 2%
- PBOC fixes yuan at 6.7379 (prev fix 6.7157, prev close 6.7271)
- Asian shares fall, dollar at seven-month high after Yellen comments – RTRS
- Oil prices fall on rise in U.S. drilling, strong dollar – RTRS
CFTC Positioning Data:
- EUR 93K short versus 82K short last week
- GBP 95K short versus 98K short last week
- JPY 46K long versus 69K long last week
- CHF 9K short versus 3K short last week
- CAD 12K short versus 14K short last week
- AUD 26K long versus 24K long last week
- NZD 8K short versus 8K short last week
Markets Update:
The Euro bounced slightly in Asia, after closing the week at 1.0970 against the Dollar last Friday. EUR/USD rose to a high of 1.0985 so far. Meanwhile, the Pound gapped lower after comments from German Chancellor Merkel, who said that no concessions will be made on the freedom of movement (FoM) within the EU and that the UK cannot count on access to the EU single market if they cancel the FoM agreement. GBP/USD opened at 1.2150, down roughly 30 pips from Friday's close. The pair was able to close the weekend gap though, and traded within a 1.2145-80 range overnight.
USD/JPY opened at 104.35, up 20 pips from Friday's close, but came under pressure ahead of the Tokyo open and declined back to 103.95. From there, it was able to bounce and head back towards 104.35.
The commodity currencies declined overnight, with exception of the New Zealand Dollar, which rose from 0.7080 to 0.7105. However, the Australian Dollar came under pressure and declined from 0.7620 to 0.7580 against the USD. USD/CAD rose from 1.3120 to 1.3175 as oil prices weakened.
Upcoming Events:
- 10:00 BST – Euro Zone CPI
- 13:30 BST – US NY Empire State Manufacturing
- 14:15 BST – US Industrial Production
- 14:15 BST – US Manufacturing Production
- 14:45 BST – Bank of England Member Broadbent speaks
- 17:15 BST – FOMC Member Fischer speaks
- 18:35 BST – Bundesbank President Weidmann speaks
- 18:35 BST – ECB President Draghi speaks
- 22:10 BST – RBA Governor Lowe speaks
- 22:45 BST – New Zealand CPI
The Week Ahead:
Tuesday, October 18th
- 01:30 BST – RBA Meeting Minutes
- 09:30 BST – UK CPI
- 13:30 BST – US CPI
- 13:30 BST – Canadian Manufacturing Sales
- 13:55 BST – US Redbook
- 15:00 BST – US NAHB Housing Market Index
Wednesday, October 19th
- 00:30 BST – Australian MI Leading Index
- 03:00 BST – China GDP
- 03:00 BST – China Industrial Production
- 03:00 BST – China Retail Sales
- 09:30 BST – UK Claimant Count Change
- 13:30 BST – US Building Permits
- 13:30 BTS – US Housing Starts
- 13:45 BTS – FOMC Member Williams speaks
- 15:00 BST – Bank of Canada Interest Rate Decision
- 15:00 BST – Bank of Canada Monetary Policy Report
- 15:30 BST – US Crude Oil Inventories
- 16:15 BST – Bank of Canada Governor Poloz speaks
- 17:15 BST – FOMC Member Harker speaks
- 18:30 BST – FOMC Member Kaplan speaks
- 19:00 BST – US Beige Book
Thursday, October 20th
- 00:45 BST – FOMC Member Dudley speaks
- 01:30 BST – Australia Employment Change
- 01:30 BST – Australia Unemployment Rate
- 01:30 BST – Australia NAB Business Confidence
- 07:00 BST – Swiss Trade Balance
- 07:00 BST – German PPI
- 09:00 BST – Euro Zone Current Account
- 09:30 BST – UK Retail Sales
- 12:45 BST – ECB Rate Decision
- 13:30 BST – ECB Press Conference
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – US Philadelphia Fed Manufacturing Index
- 15:00 BST – US Existing Home Sales
- 15:00 BST – US CB Leading Index
Friday, October 21st
- 07:35 BST – Bank of Japan Governor Kuroda speaks
- 10:00 BST – Bundesbank President Weidmann speaks
- 13:30 BST – Canadian CPI
- 13:30 BST – Canadian Retail Sales
- 15:00 BST – Euro Zone Consumer Confidence
- 18:00 BST – US Baker Hughes Oil Rig Count
- 19:30 BST – FOMC Member Williams speaks
- 20:30 BST – CFTC Positioning Data
