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A giant with feet of clay – but not too much.

A new day, a new intervention by Chinese policy makers. But we will get to the solutions in a moment. Let’s start with the problems. Part of this began in the mid-1990s when a metal industry worker from a small rural village, Hui Ka Yan, had an idea: to borrow...

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AUDUSD Technical Analysis – Awaiting the NFP

AUDUSD Technical Analysis – Awaiting the NFP

US:The Fed hiked by 25 bps as expected and kept everything unchanged at the last meeting.Inflation expectations and CPI readings continue to show disinflation with the last two Core CPI M/M figures coming in at 0.16%. The US PMIs missed expectations across the board...

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Major currencies subdued awaiting US jobs report

Major currencies subdued awaiting US jobs report

It's a quiet one in terms of market action in Europe, and understandably so. While equities are seeing some hopeful optimism, FX is rather dead with dollar pairs still sitting in narrow ranges on the day. Here's a snapshot of things currently:It's all about the US...

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USDCAD Technical Analysis – The price is at a key support

USDCAD Technical Analysis – The price is at a key support

US:The Fed hiked by 25 bps as expected and kept everything unchanged.Fed Chair Powell reaffirmed their data dependency and kept all the options on the table.Inflation expectations and CPI readings continue to show disinflation with the last two Core CPI M/M figures...

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UK August final manufacturing PMI 43.0 vs 42.5 prelim

UK August final manufacturing PMI 43.0 vs 42.5 prelim

Prior 45.3The headline reading is a 39-month low as UK manufacturing activity takes a big hit in August. Factory orders are seen tumbling in the face of higher rates with demand also being hit by weaker domestic and export conditions. S&P Global notes that:“August...

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Reminder: It is a US holiday on Monday

Reminder: It is a US holiday on Monday

It's the start of a new month and we also have the US jobs report to contend with. So, when you throw in perhaps some positioning flows -or lack thereof - before an extended weekend, that might make things tricky to decipher later in the day. Anyway, I would lean...

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Italy Q2 final GDP -0.4% vs -0.3% q/q prelim

Italy Q2 final GDP -0.4% vs -0.3% q/q prelim

High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...

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Germany August final manufacturing PMI 39.1 vs 39.1 prelim

Germany August final manufacturing PMI 39.1 vs 39.1 prelim

Prior 38.8No change to the initial estimate as Germany's manufacturing sector remains in a deep recession, with output falling at its fastest pace since May 2020. Subdued demand conditions continue to be the root cause of the problems here but at least there is some...

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France August final manufacturing PMI 46.0 vs 46.4 prelim

France August final manufacturing PMI 46.0 vs 46.4 prelim

Prior 45.1It's a slight revision lower but at least the reading is better than July. That said, it still points to a contraction in France's manufacturing sector as new orders declined at an accelerated pace in August. HCOB notes that:“France's manufacturing sector...

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Italy August manufacturing PMI 45.4 vs 46.0 expected

Italy August manufacturing PMI 45.4 vs 46.0 expected

Prior 44.5Italy's manufacturing sector stays in a downturn in August with production and new orders continuing to fall sharply on the month. The added negative development is that job losses were signalled for the first time since August 2020. HCOB notes that:“The...

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Switzerland August manufacturing PMI 39.9 vs 40.0 expected

Switzerland August manufacturing PMI 39.9 vs 40.0 expected

Prior 38.5That's a slight improvement in Swiss manufacturing activity but it still points to a rather strong contraction after the plunge in July. Output continues to show further signs of falling but the good news at least is that inflationary pressures have eased...

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USDJPY Technical Analysis – Signs of a top are emerging

USDJPY Technical Analysis – Signs of a top are emerging

US:The Fed hiked by 25 bps as expected and kept everything unchanged at the last meeting.Inflation expectations and CPI readings continue to show disinflation with the last two Core CPI M/M figures coming in at 0.16%. The US PMIs missed expectations across the board...

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Spain August manufacturing PMI 46.5 vs 48.8 expected

Spain August manufacturing PMI 46.5 vs 48.8 expected

Prior 47.8That's a sharp drop in Spain's manufacturing activity with the headline reading being the lowest so far this year. Of note, new orders are showing their quickest pace of declines since November last year as subdued demand conditions are weighing further on...

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FX option expiries for 1 September 10am New York cut

FX option expiries for 1 September 10am New York cut

There are some big ones to watch out for on the day, as highlighted in bold.They are all for EUR/USD and will factor into price action in the aftermath of the US non-farm payrolls later today.The ones at 1.0800 and 1.0820-25 will be ones that could add to a defensive...

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Switzerland August CPI +1.6% vs +1.5% y/y expected

Switzerland August CPI +1.6% vs +1.5% y/y expected

Prior +1.6%Core CPI +1.5% y/yPrior +1.7%At best, this might see the SNB choose to raise key rates one more time later this month. I mean, core inflation is continuing to ease and that's a positive development in allowing them some wiggle room at least.MoneyMaker FX EA...

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