Forex news for Americas trading on September 3, 2019:
- US ISM manufacturing for August 49.1 vs 51.2 estimate
- US Markit US manufacturing PMI for August (F) 50.3 versus 50.0 estimate
- Sources: ECB leaning toward rate cut, tiering, reinforced guidance in Sept 12 stimulus
- Markit Canada PMI manufacturing 49.1 versus 50.2 last month
- Trump had initially wanted to 'double' tariffs on China - report
- Looks like a big group of Conservative MPs will join opposition today
- Tories plan to kick out all MPs who don't vote with government today
- ECB's Muller: There is no strong case to resume bond buying
- New Zealand GDT price index -0.4%
- US July construction spending +0.1% vs +0.3% expected
- More tweets from Pres. Trump: Gets on Fed's case (again)
- UK Labour Corbyn: Confident we can have both an election and prevent a no deal Brexit
- Pres. Trump: We are doing very well in our negotiations with China
- China trade negotiator Lui He says hopes two sides seek common ground
Markets:
- Gold up $16 to $1545
- WTI crude down $1.15 to $53.95
- S&P 500 down 20 to 2906
- US 10-year yields down 2 bps to 1.48%
- AUD leads, USD lags
We're waiting on the vote to take power away from Boris Johnson and start the process of blocking a no-deal Brexit. That's expected shortly but at this point it sounds like a done deal. The first question will be what happens to rebel Tories; there has been talk they will be kicked out of the party. However Johnson will need them tomorrow if he hopes to trigger an election.
In economic data it was the ISM manufacturing report that made waves in the market. The US dollar lost ground afterwards with USD/JPY down to a session low of 105.74 from 106.26. It slowly chopped back to 106.05 late.
The dollar failed to rebound elsewhere with the euro, pound and commodity currencies finishing near the best levels of the day. EUR/USD rose from 1.0925 to 1.0970. Both the pound and the euro recovered from the lowest levels of the year (or beyond).
Cable had broken 1.2000 and hit stops but reversed to finish the day up slightly in a solid turnaround that remains fragile given the political landscape.
AUD was hit with a barrage of news and data early in the day and tested the August lows but held them. That sparked some short covering and a solid rebound to 0.6760 from a low of 0.6688.
