LONDON (SHARECAST) - This is a review of the elements likely to affect foreign exchange (Forex) trading in Europe:
Main headlines:
China manufacturers face fall in demand - FT
France Bails Out Lender - WSJ
Bernanke says Fed ready to act but short on specifics - Reuters
Fed Moving Toward Open-Ended Bond Purchases to Satisfy Bernanke on Growth - Bloomberg
Draghi May See Silver Lining in Disappointing Investors on ECB Bond Plan - Bloomberg
ECB chief and Spanish PM on collision course - FT
Don't Rule Out a Rate Cut From Europe Central Bank - CNBC
Americas wrap-up:
NY probes private equity tax strategy - FT
At Jackson Hole, a growing fear for Fed independence - Reuters
Gold Wagers Jump to 5-Month High as Fed Spurs Rally - Bloomberg
Consumer confidence rises but outlook still grim - Reuters
Samsung Falls as Apple Eyes Ban on New Galaxy Phone - Bloomberg
Brazil's Listless Growth Continues - WSJ
Asia-Pacific summary:
Asian Stocks Reverse Loss as Data Fuels Stimulus Optimism - Bloomberg
India Signals ‘Natural Death’ for Tax Proposal as Credit Downgrade Looms - Bloomberg
Why China Will Not Bow to Pressure to Boost Economy - CNBC
China HSBC PMI Drops to Worst Level Since March 2009 - CNBC
China Slowdown Raises Risk of Wen Missing Target - Bloomberg
Hu Jintao Ally Sidelined as China Leaders Jockey Before Handover - Bloomberg
Aussie hit by weak China, domestic data - Reuters
Yen Rises Versus Most Major Peers on Global Slowdown Concern; Aussie Falls - Bloomberg
Policy dispute at Thai central bank - FT
European news:
Senior German Minister Backs Weidmann in ECB Battle - CNBC
Germans write off Greece, says poll - FT
Greek PM sings in tune, now must hit the hard notes - Reuters
France seeks EU approval for bank rescue - FT
Rajoy: Banking Union Needs Resolution Tools - WSJ
London Luxury Homebuilding To Jump 70% On Foreigner Cash - Bloomberg
US investor is Ireland’s biggest creditor - FT
FOREX action
EUR: The main euro crosses are paring their recent gains. Market participants are waiting for this week’s ECB monthly meeting where Mario Draghi could give a hint of his bond market intervention plans. EUR-USD is easing towards 1.2575 while EUR-JPY is holding above 98.50.
GBP: The sterling crosses are moving in synch with the euro trades. Cable was unable the break the 1.5900 resistance level in its first attempt, while GBP-JPY is trading close to 124.30. EUR-GBP is moving sideways, pivoting in the 0.7930 area after a recent spike towards 0.7960.
CHF: As with the rest of European crosses, the Swiss franc made gains versus the dollar last Friday. USD-CHF is moving close to 0.9550. Meanwhile, EUR-CHF is in its familiar trading range close to 1.2010.
Nordics: The NOK and the SEK show mixed trading. The SEK is paring gains after a weak manufacturing PMI reading that is taking its toll on the Krona.
USD & JPY: The US dollar was the main casualty after the long-awaited Ben Bernanke speech at the Federal Reserve Symposium in Jackson Hole, Wyoming. The lack of Fed action overshadowed strong consumer confidence and factory orders figures. USD-JPY trades close to 78.35.
CAD, AUD & NZD: The aussie dollar continues to trail behind its peers after China’s manufacturing PMI dropped in August to its worst level since March 2009. China’s mounting growth concerns put Australia’s economic resilience in doubt and could leave its mining boom in tatters.
