FX Brief: Signs Of A Global Slowdown Continue To Appear

A summary of news and snapshot of moves from today’s Asia session.

  • Signs of a global slowdown continue to appear with Singapore’s exports sinking to their lowest level since February 2013 at -17.3% YoY (-7.6% MoM). This follows on from Q2 GDP contracting and raises the potential for a technical recession.
  • WTO appeal’s judges ruled that the US didn’t fully comply with a previous WTO ruling and could face Chinese sanctions.
  • Volatility remained calm across asset classes (even Bitcoin) which saw FX pairs confined well within their typical daily ranges, following a relatively turbulent US session.
  • GBP/USD remains just off 25-month lows, WTI trades in a small range below $58 after its most bearish session in -weeks, gold continues to coil around $1400. CHF and GBP are the strongest majors, NZD and EUR are the weakest, but difficult to look too much into this given the small ranges.

Up Next:

  • GBP is already in the doldrums, but today’s inflation set could probably find a way to make it worse if it falls short of expectations. With inflation around BoE’s target, it may not be hot enough to warrant that hike, which already seems a far stretch given the dovish undertone from BoE of late.
  • Inflation for the Eurozone are final reads, so less likely to instil volatility (although that’s not to say it should be ignored).
  • Canada’s economic data has continued to excel relative to expectations, so perhaps a CPI beat is not too difficult to imagine. CAD crosses are the clear focus here.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.