• Australia’s RBA keeps interest rates on hold at 3% for the 5th consecutive month.
  • Swiss GDP for Q2 -0.3% q/q from a revised -0.9% and -2.0% y/y from a revised -2.2% the previous quarter, better than expected.
  • German preliminary retail Sales for July better than expected +0.7% m/m from -1.3%, -1.0% y/y from -2.0%
  • Swiss PMI for August 50.2 from 44.3 in July, better than market expectations of 47.0
  • Italian Business Confidence for August 74.8 from a revised 72.4, the highest level since Oct. 2008.
  • Italian Manufacturing PMI for August 44.2 from 45.4 in July
  • French Manufacturing PMI for August 50.8 from 48.1 better than expected and recording the highest level since Jan 2008.
  • German Manufacturing PMI for August 49.2 from 45.7 in July which was in line with market expectations.
  • German Unemployment fell unexpectedly by 1,000 in August to 3.481 million with the unemployment rate unchanged at 8.3%.
  • Euro zone Manufacturing PMI for August 48.2 from 46.3 in July lightly better than market expectations of 47.9 recording a 14 month high.
  • UK CIPS Manufacturing PMI new orders fell unexpectedly to 49.7 in August from 50.2 (revised from 50.8). The market had been looking for 51.5.
  • UK net lending to individuals and consumer credit for July were the lowest on record. Consumer credit was -0.217 billion Stg in July from +0.078 billion Stg in June and net lending -0.418 billion Stg in July from +0.145 billion Stg in June. Mortgage approvals however increased from 47,891 to 50,123 in July in line with market expectations.
  • Euro zone Unemployment rate rose as expected in July from 9.4% to 9.5%

GBP/USD

Opened the session around 1.6290 and gradually climbed to a high of 1.6370 encouraged by higher stock prices before giving back the gains on unexpectedly poor PMI and mortgage data falling to a low of 1.6240. Sterling has since drifted lower to 1.6220.

Ranges:-

GBP/USD 1.6210 – 1.6370

EUR/USD 1.4290 – 1.4375

USD/JPY 93.00 – 93.35

AUD/USD 0.8345 – 0.8445

Closing Asian Stock Markets

Nikkei +37.53 (0.36%) at 10,530-06

Hang Seng +148.11 (0.75%) at 19,872-30

Shanghai Composite +15.98 (0.60%) at 2,683-72