Forexlive European FX news wrap 9 Sep – The US Dollar extends gains

• China’s Xi urges stronger ties and fair business environment with Spain
• German Finance Minister backs Draghi’s growth focus but not joint EU borrowing
• Sentiment continues to improve through the session
• Draghi urges EU to boost spending by €750B and calls for joint debt issuance
• China seeks public input on carbon trading plan for cement steel and aluminium sectors
• NHC warns of potential surge and hurricane winds to Louisiana and Texas
• China to issue up to €2 bln in euro sovereign bonds in Paris on Sept 23
• What’s priced into money markets for upcoming September central bank decisions
• EU Sentix Index -15.4 vs -12.5 expected
• Greece plans €8-10 bln bond issue in 2025 aims for early bailout repayments
• China August passenger car sales down 1.1% y/y to 1.92 mln CPCA reports
• Swiss sight deposits dip slightly to 447.258 bln SFR in latest week
• Russian forces target energy facilities in 7 regions Ukraine’s Energy Ministry reports
• Japan backs ex-FX diplomat Masato Kanda for next ADB President
• Weekly update on interest rate expectations
• Russian military to participate in China’s sea and air drills in Japan and Okhotsk seas
• Market Outlook for the Week of 9th – 13th September
• Price action attempting a bit of a recovery from Friday’s moves
• What are the main events for today?
• Swedish Housing Prices 47% vs 43% prior
• Japan’s Takaichi says inflation is still weak when excluding external factors
• Today’s FX option expiry levels for the NY cut
• NHC warns of life-threatening storm surge and hurricane winds for Louisiana and Texas
• Japan’s Takaichi says strategic fiscal spending to boost jobs income and tax revenue
• Japan economy watchers poll 49.0 vs 47.5 prior
• German intelligence warns of Russian GRU cyber group targeting NATO and EU nations
• BofA forecasts Fed to start 25bps cuts from September 2024 and slowing in 2025
• Trafigura hints at possible $60 oil
• Russia’s coal exports to China drop 8% in H1 2024, rebound expected in 2025
• Goldman Sachs: OPEC to implement moderate production hikes in coming quarters
• What’s on the calendar for today?
• S&P Global expects OPEC+ to begin oil output increases in 2025

Markets:

• CAD leads, JPY lags on the day
• European equities higher;
  S&P 500 futures up 0.79%
• US 10-year yields up 2 bps to
  3.754%
• Gold flat at $2,497
• WTI
  crude up 0.93% to $68.29
• Bitcoin
  up 0.79% to $55,306

It’s been a
quiet session with no notable news release. The mood in the markets has been
positive but we will need to see how that evolves after the US cash equity
open. The US Dollar extended the gains following the better than feared NFP report on Friday.

Unfortunately,
this week is pretty bare on the data front as we head into the FOMC decision
next week. The market still sees a 25% chance of a 50 bps cut at the upcoming
meeting and a soft US CPI report on Wednesday might increase those
probabilities a little.

The focus
remains on the growth and labour market data though. For the growth data, we
have the US NFIB Small Business Optimism Index tomorrow and the University of
Michigan Consumer Sentiment on Friday. For the labour market data, we get the
latest US Jobless Claims on Thursday.

This article was written by Giuseppe Dellamotta at www.forexlive.com.