The US$ is mixed on Wednesday with the Euro again under pressure, particularly in early Europe, as Italy and the EU stepped up their argument over the Italian budget debt levels. The commodity bloc currencies, the Aud$ and Kiwi were also under heavy pressure after the RBA yesterday, although they have recovered from their European lows, while Cable looks very sick because of the Tory infighting over the current Brexit plans. UK PM Theresa May is facing criticism on from all sides, including from both the EU and her own Brexiteers over her Chequers Plan, with Boris Johnson today giving a keynote speech denouncing the current path towards Brexit. The Yen was a strong performer, with the dollar failing to carry on to new highs and heading into reverse as some safe haven demand settled in.
Elsewhere, US stocks were mixed, DJI up (to a new all-time high), Nasdaq down, S+P flat, while WTI is unchanged after a choppy session which included a new 4 year high. In the metals, interestingly, despite the US$ bid tone, Gold and Silver were well bid, which may be something to keep an eye on, with the charts beginning to look slightly more positive for both, at least in the short term..
Wednesday will be a bit thin for data but will see the Australian Building Permits for July (exp -2.5%), while the EU/US will look to the Services/Composite PMIs for guidance, along with the speech from the ECB’s Mersch. The ADP Jobs data will be released from the US (exp 185K), while Fed speakers will include Evans, Barkin, Brainard, Mester and Powell.
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