FX Highlights

  • USD is trading mixed in pre-nfp trade with the JPY higher, EUR flat, GBP lower and the CAD pressured by weaker than expected Canadian unemployment growth, AUD traded lower despite a hawkish RBA monetary policy statement, the main drivers of overseas trade were a surprise cut in Russian interest rates, report that China may take action to cap lending and report of a sharp H1 loss at RBS, equity markets and crude prices drifted lower, focus turns to today's release of US unemployment and nonfarm payrolls, rumors are circulating that nfp will fall by just 250k
  • Canada's unemployment steady at 8.6%, employment growth fell by 45k, CAD lower
  • Swiss unemployment rate rose to 3.7% in July from 3.6% last month, CHF lower
  • Nikkei reports that the Japanese government will leave its economic assessment unchanged for July, JPY higher
  • Chinese reports indicate that PBOC will look to reduce lending by 70%, Yuan lower
  • Australia's July PCI falls 3.1 points 39.5, RBA policy statement seen as hawkish, RBA looks to move towards more normal policy and sees less need for further rate cuts, the RBA also revised up its inflation and growth forecasts, AUD lower on China tightening worries
  • UK July PPI falls 1.3% compared to -1% in June, RBS reports a £1 bln H1 loss, GBP lower
  • German June exports rise and the June trade surplus widens to 12.2 bln from 9.6 bln in May, German June industrial output falls 0.1%%,EUR flat
  • The Russian central bank cuts interest rates 25 basis points to 10.75%, RUB lower
  • US equity markets set to open lower, European equities 1% lower, Nikkei closed 25 points higher

Upcoming Events

  • US- Friday, July unemployment and non farm payrolls will be released, unemployment is expected to rise 0.1% to 9.6% and the nfp is expected to fall by 320k
  • CAN- Friday, July unemployment will be released expected at 8.7% compared to 8.6% last month with employment growth at -15k (the report has been released)