Forex headlines for September 1, 2014:
- Banks will get ECB stress test results at month early
- UK’s Cameron says that Russian troops on Ukrainian soil unjustified and unacceptable
- Ukraine changing tactics, shifting focus to halting separatist advance – Defense minister
- EU preparing emergency plans if Russia turns the gas off
- Poll sees 25% chance of deposit rate cut by ECB on Thursday
- French 2-year yields fall below 0% for first time
- Spain sells 50-year bond
- Schaeuble flogs the 20 year old dead horse
- Schaeuble says there is too little investment in Europe as a whole
- WTI crude oil down 10-cents to $95.86
- Gold down 32-cents to $1287
- European stock markets mixed
- NZD leads, JPY lags
No surprise that it was a light session with US traders getting one last dose of sunshine before Fall trading sets in. If anything, the US dollar was fractionally stronger as EUR/USD drifted lower to 1.3130 from 1.3140 in NY hours, most of it when London was still online.
USD/JPY is plumbing the session high near 104.30 but is hitting offers there. Watch for a move on a break higher.
Cable was one of the better moves although that’s not saying much. It fell down to 1.6610 from 1.6620 in a quick move and has been bleeding lower since it hit 1.6644 just before the UK Markit PMI.
The Australian dollar is headlining the commodity bloc moves at the moment with AUD/USD at a US and European low of 0.9330 from 0.9350 in European trading. Some paring of longs isn’t a big surprise ahead of today’s RBA decision.
CAD and NZD are very quiet.
Gold hit an airpocket in a $5 swan dive in illiquid US afternoon trading. From $1282 it bounced right back to $1287 and we’ll finish the day about unchanged.
