First rumour of the day from China ...
- That's China's state agency for margin finance is raising 1.4 tln RMB in interbank loans
- In order to prepare for a new round of stock market rescue
This follows on from the state buying yesterday:
Japan retail sales data for July
- expected 0.6%, prior was -0.6%
- expected 1.1%, prior was 1.0%
Retail sales easily beating expectations and the previous month's results. Earlier we got household spending data (see link below) missing expectations and therefore painting a different picture.
Moody's has revised down its forecast for
GDP growth in the G20 economies to 2.8% next year,
- Says that the revision mainly reflects the impact of a more marked slowdown now forecast in China and more prolonged negative effects of low commodity prices on G20 producers than earlier expected
Revised down GDP growth forecast for in 2016 to 6.3%, from 6.5% previously
Ryan had the Q2 US GDP revisions posted during our overnight
Briefly, it's a very positive story:
- US Q2 GDP 1st revision 3.7% vs 3.2% expected (q/q annualized)
More at Ryan's post, including my favourite bit of analysis on the whole thing: ""
An unnamed People’s Bank of China official has weighed in on the Federal Reserve rate hike debate.
Adam had the details here:
PBOC official: Fed should delay rate hike
It's a Reuters report on comments from "unnamed PBOC official":
We get data released from the Reserve Bank of New Zealand today on NZD purchased or sold during the month (today's data will be for July)
- This data is watched for evidence of RBNZ intervention in the currency
I've checked various economic calendars, and if you do the same you'll note there is no mention of this data. But .... look for it at 0200GMT here at ForexLive
More on Bloomberg headlines from French Economy Minister Macron on Bloomberg TV
- Impact of China slowdown on France's economic growth is extremely limited
- Says market initially over reacted to China slowdown
Comments from French Economy Minister Macron, speaking on Bloomberg TV
- Pledges France labour market reforms in coming months
- Sees sufficient political support to pass new reforms
(Is it OK if I call him Macro?)
It's a big day in Japan ... CPI day. Abe, Kuroda & friends will be gathered around the Bloomberg awaiting the data!
Due at 2330GMT
. Most data from Japan hits at 2350GMT, but we get CPI data a little earlier.
Did someone say Friday?
Yes, yes indeed. Welcome to Friday all!
Week is not over yet though ... so any trade ideas, thoughts, views, ForexLive traders would like to share and discuss with other ForexLive traders, please do so:
Charles Plosser is former president of the Federal Reserve Bank of Philadelphia
He was interviewed on Thursday:
- "I think the Fed needs to be careful and not overreact to short-term events
And, Plosser has loosened his tongue a little on markets looking for support from the central bank:
Heavy machinery manufacturer Caterpillar is often cited as a bellwether, so their activities are closely watched
Caterpillar have announced job cuts:
- Reducing staff in its customer services support division by 475
Forex news for August 27, 2015:
- Gold down $1 to $1123
- WTI crude up $3.59 to $42.19
- US 10-year yields flat at 2.16%
- AUD leads, CHF lags
EUR/USD was under constant pressure after breaking the 200-dma yesterday. The European low of 1.1275 gave way after US GDP and that ran stops down to 1.1230. Some small bounces were sold in an eventual decline to 1.1203. Bids at the big figure held and the pair rebounded to 1.1264 as stocks struggled late.