Japanese household spending rose less than expected in July – recapFed speakers today include Williams and Waller – then the ‘blackout’ period beginsChinese banks used swaps to build short positions in the dollar of around US$100 billionFederal Open Market Committee (FOMC) blackout period begins on the weekendAustralian July home loans +2.9% m/m (expected +1.0%)Friday morning trade has been cancelled in Hong Kong due massive stormPBOC sets USD/ CNY reference rate for today at 7.0925 (vs. estimate at 7.0927)Former PBOC Gov says China requires proactive fiscal policy, accommodative monetaryFed’s Goolsbee says trend of economic data justifies multiple rate cutsFor AAPL traders: Goldman Sachs on 4 surprises that could drive stock to $276 price targetCiti forecasting Brent crude oil into the US$60 rangeJapan data – July household spending +0.1% y/y (expected +1.2%)It’s a near coin flip (not quite though) between a 25bp and 50bp Fed interest rate cutGoldman Sachs on what its gonna take from NFP for a 50bp interest rate cut from the FOMCHere’s why the Bank of England is expected to cut interest rates by only 10bp!JP Morgan forecasts Brent crude oil to low $60sOptions are pricing in big stock swings on NFP FridayICYMI – China will cut the retail prices of gasoline and diesel on Friday (i.e. today)Forexlive Americas FX news wrap: US dollar weakens after softer ADP but ISM services firmsBroadcom earnings beat on the top and bottom lines, but the stock is lowerTrade ideas thread – Friday, 6 September, insightful charts, technical analysis, ideas
Major
FX ranges in Asia today were extremely limited. Even JPY was subdued
as traders awaited the US non-farm payroll report due at 8.30am US
Eastern time.
Goldman Sachs on what its gonna take from NFP for a 50bp interest rate cut from the FOMCWhat would it take from non-farm payrolls to get a 50 basis point cut?Preview: Why August non-farm payrolls frequently disappointWhat would it take from non-farm payrolls to get a 50 basis point cut?Goldman Sachs NFP preview, say that August payrolls often have a negative bias initiallyFriday’s NFP result could prompt a 50bp rate cut by the Federal Reserve
Regional equities traded lower again. Hong
Kong cancelled
its
Friday morning trading session, due to the No. 8 Storm Signal issued
by the HK Observatory.
The
data release of note for the session was from Japan, where July
household spending showed a huge miss:
Consumer
spending +0.1% in July y/y compared with the median market forecast
for 1.2%Month-on-month
saw it down 1.7% against the -0.2% expected
Federal
Reserve Bank of Chicago President Austan Goolsbee spoke with Dow
Jones / Market Watch saying he sees a series of rate cuts ahead. He
wasn’t specific though, not nominating size or dates.
Former
People’s Bank of China Governor Yi Gang was more forthright, saying
China’s economy needs both proactive fiscal and accommodative monetary policies.
Ahead
for the US session is not only the NFP, but also speakers from the
Federal Reserve including
Federal
Reserve Bank of New York President John Williams at 0845 (1245 GMT)
US Eastern timeand
Federal Reserve Board Governor Christopher Waller at 1100 US Eastern
time (1500 GMT).
After
that it’ll be quiet from the Federal Reserve for more than a week:
Federal Open Market Committee (FOMC) blackout period begins on the weekend
As I post USD/JPY is dribbling to its session low:
This article was written by Eamonn Sheridan at www.forexlive.com.
