Headlines:
Weekly update on interest rates expectationsA growing rift at the ECB on the economic outlook?SNB total sight deposits w.e. 30 August CHF 456.7 bn vs CHF 463.6 bn priorItaly Q2 final GDP 0.2% vs 0.2% Q/Q expectedEurozone August final manufacturing PMI 45.8 vs 45.6 prelimSwitzerland August manufacturing PMI 49.0 vs 43.5 expectedUK August final manufacturing PMI 52.5 vs. 52.5 prelim
Markets:
EUR leads, JPY lags on the dayEuropean equities slightly lower10-year German bund yields up 3 bps to 2.33%Gold down 0.2% to $2,498.63WTI crude up 0.3% to $73.75Bitcoin up 2.3% to $58,630
It’s a quiet start to the new week with the dollar keeping more mixed in general, as the yen lags on the day. It is a holiday for North American markets, so that isn’t giving traders much to work with amid the longer weekend.
The yen is down as bond yields are a little higher, with USD/JPY moving up from around 146.10 earlier to near 146.90 currently.
The greenback isn’t seeing broad based gains though. EUR/USD is up 0.1% to 1.1063 while USD/CHF is up 0.1% to 0.8510, and AUD/USD up 0.1% to 0.6773. It’s a mixed picture with the kiwi lagging slightly as well across the board, with NZD/USD down 0.4% to 0.6225.
European indices are also showing light changes while gold is down slightly under $2,500 as the tug of war there continues.
In terms of market flows, it’s not one to attribute anything towards to start the week.
All eyes are on key labour market data from the US later in the week. So, the early stages here are more just traders settling back into things after month-end last week.
This article was written by Justin Low at www.forexlive.com.
