Greenback And Japanese Yen Remain Weak, Volatility Ahead

Market Reviews

Japanese Yen and the U.S. dollar are trading as the softest ones on the trade war threat. The Pound reinforced to turn the firmest on the potential UK-EU Brexit deal. As of stocks, DOW increased 0.57% to 26145.99. S&P 500 rose 0.53% at 2904.18. NASDAQ gained 0.75% at 8013.71. Nikkei was up 0.93%. Hong Hong HSI grew 0.81%. Singapore Strait Times lifted 0.71%. China Shanghai SSE reduced -0.13%. 10 year Treasury yield closed flat at 2.963.

Raphael Bostic (Atlanta Fed President) claimed the US economy was “doing well and standing on its own”. Concerning the rate path, Bostic outlined “a gradual increase in nominal interest rates over the next handful of quarters.” He also added that there was still “some uncertainty” to whether US is “really at full employment”. If there is “not a risk of overheating then we have the possibility to be more patient.”

September 30 was hailed as the deadline for concluding US-Canada NAFTA negotiation. The legal text has to be published by October 1. However, Justin Trudeau (Canadian Prime Minister) said: “we have seen various deadlines put forward as markers to work for.” And, “we’ll do the work and try and get there as quick as we can, but we’re going to make sure that we’re doing what is necessary to get the right deal for Canadians.”

New Zealand Business NZ manufacturing PMI increased from 51.2 to 52 in August. China retail sales rose 9.0% yoy. Industrial production lifted 6.1% yoy. Fixed assets investment grew 5.3% yoy. Today, Eurozone will release trade balance and US will announce retail sales, import price index, industrial production, business inventories and U of Michigan consumer sentiment.