Pound Declined On Another Brexit Complication, Japanese Yen Peaked

Market Reviews

The Pound dropped to trade as the weakest as Michel Barnier (EU chief Brexit negotiator) claimed that he “strongly opposed” to Theresa May’s Brexit deal. Kiwi and Loonie broadly eased as well. Japanese Yen grew to become the firmest. Euro and Aussie follow suit. Meanwhile, Nikkei reduced-0.69% at 22707.38. China Shanghai SSE dropped -0.38%. Hong Kong HSI fell -0.83% and Singapore Strait Times was down -0.37%. 10 year JGB yield increased 0.011 to 0.12%. WTI crude oil broke 70 to 70.5 but then closed at 69.65. Gold is holding near 1200 and consolidation is resuming.

NAFTA negotiation between U.S. and Canada turned out to be a disappointment, and it is scheduled to resume on Wednesday. Donald Trump attacked Canada, tweeting:“there is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out.” And, “Congress should not interfere w/these negotiations or I will simply terminate NAFTA entirely & we will be far better off.” Trump added “we were far better off before NAFTA — should never have been signed. Even the Vat Tax was not accounted for. We make new deal or go back to pre-NAFTA!”

Japan PMI manufacturing made up 52.5 in August, higher than 52.3 in July. Australia retails sales grew 0.0% mom in July. ANZ job advertisements declined -0.6% mom in August. AiG Performance of Manufacturing Index was up 4.7 pts to 56.7 in August. Exports sub-index has rose 8.5 pts to 58.4 pts. Company operating profits increased 2.0% qoq in the second quarter. TD securities inflation surged 0.1% mom in August. New Zealand Terms of Trade Index lifted 0.6% qoq in the second quarter. Export prices for goods increased 2.4%. Import prices for goods were up 1.7%. Seasonally adjusted goods export volumes grew 1.1%, while goods import volumes surged 0.9%. Seasonally adjusted goods export values increased 3.0%, while goods import values were up 1.7%.China Caixin PMI manufacturing lowered -0.2 to 50.6 in August.

Today, Swiss will feature retail sales and PMI manufacturing, Eurozone will publish PMI manufacturing revision, UK will announce PMi manufacturing.