UK Q2 GDP dips to 0.5%below estimates. GBP unchanged!
- Japan SPPI y/y 0.6% vs. 0.6%
- Switzerland UBS Consumption indicator 1.65 vs. 1.64 previously
- Eurozone M3 money supply y/y 4.9% vs. 5.0%
- Eurozone private loans y/y 1.1% vs. 11.%
- UK Preliminary GDP q/q 0.5% vs. 0.6%
- UK index of services 3m/3m 0.9% vs. 1.0%
- US Core durable goods orders m/m -0.4% vs. 0.0%
- US durable goods orders m/m -1.2% vs. -1.5%
Later
- US S&P/CS Composite HPI
- US Flash services PMI
- CB Consumer confidence
- Richmond Manufacturing Index
The Asian trading session saw the Japanese Yen gather momentum across the board. The Yen is up 0.74% at the time of writing. The Yen’s volatility suggests the market uncertainty heading into the FOMC meeting followed a day later by the Bank of Japan where speculation is rife for additional easing announcement from the Bank of Japan.
The Australian dollar which was strong yesterday, was trading more subdued and was range bound for most of today. The quarterly CPI numbers from Australia are due for release tomorrow. The New Zealand dollar remained strong gaining 027% for the day. The currency remains range bound off Friday’s price action and could potentially remain sideways into the FOMC meeting and the RBNZ meeting due only a few hours later.
The Asian equity markets were mixed with the Nikkei225 understandably closing lower with -0.90% while the Shanghai Composite and the Hang Seng both managed to close in the green with 0.14% and 0.11% gains respectively.
The European trading session saw the release of the UK GDP numbers which missed estimates, rising only 0.5% and down from 0.7% in Q2. The British Pound initially dipped lower only to recover off the lows near 1.531 but the currency remains flat for the day. The Euro was a bit stronger rising 0.12% for the day after a brief test to 1.037. EURUSD continues to post a second day of higher lows after prices hit 1.099 last week. There were no major releases due from the Eurozone today with the exception of the money supply which increased 4.9% but missing estimates of 5.0%.
The US session saw the release of the monthly durable goods numbers which was yet again weak. Headline durable goods orders fell -1.2% while core durable goods orders fell -0.4%. The US Dollar index is trading at a modest 0.06% gains for the day. Other economic releases from the US today include the S&P/Case-Shiller house price index followed by the US services PMI, consumer confidence data and the Richmond manufacturing index, all of which could keep the markets volatile.
The USDCAD is trading stronger for the day as the Dollar gained 0.19% against the Canadian dollar which is weaker as Oil prices were quite bearish. WTI Crude oil is down -1.15% and testing the lows of $43.25 at the time of writing. Gold futures on the contrary are trading stronger with prices up 0.26% with Gold testing session highs of 1168 before easing back lower.
