UK the focus on US Labor Day
City Index September 1, 2014 2:33 PM
<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.
Supports 1.3110-1.3085-1.3050 | Resistance 1.3150-1.3200-1.3270
Supports 103.80-103.50-103.00 | Resistance 104.30-104.85-105.05
Supports 1.6560-1.6520-1.6485 | Resistance 1.6640-1.6680-1.6700