UK the focus on US Labor Day

<p>The FX markets ignored the Chinese manufacturing data as levels remain close to Friday’s closing prices as tensions in Ukraine increased over the weekend. The […]</p>

The FX markets ignored the Chinese manufacturing data as levels remain close to Friday’s closing prices as tensions in Ukraine increased over the weekend. The HSBC manufacturing PMI came in at 50.2 whilst the official data for August came in at 51.1 with both numbers missing their respective consensus forecasts by one tenth.

Tensions have increased in Ukraine over the weekend following media reports that Russian President Putin has called for talks to discuss the ‘statehood’ of eastern Ukraine which follows the EU agreement to impose further sanctions on Russia if the violence escalates further. Media reports across the pond suggest the US could be prepared to arm Ukraine in what they suggest is a ‘Russian Invasion’.

The NZD has the yellow jersey in the Asian FX session following a rise of 0.3% in the Terms of trade index versus expectations of a 3.5% drop which was supported by a drop in import prices.

The SNB Chairman Thomas Jordan has reminded the market that the SNB are ready to defend the 1.20 peg to ensure price stability with their policy meeting on the 17th now expected bring policy action.

Looking ahead today the data calendar brings us manufacturing PMI from the UK along with mortgage approvals with there being no doubt that the ECB meeting on Thursday is going to be the market focus this week as the French Prime Minister Manuel Valls has called for more action from the ECB to lower the value of the euro.

 

EUR/USD

Supports 1.3110-1.3085-1.3050 | Resistance 1.3150-1.3200-1.3270

 

USD/JPY

Supports 103.80-103.50-103.00 | Resistance 104.30-104.85-105.05

 



GBP/USD

Supports 1.6560-1.6520-1.6485 | Resistance 1.6640-1.6680-1.6700

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.