Morning Brew September 6 2022
Senior Relationship Manager
Summary: Relief measures coming into focus
Equities were trading slowly yesterday on the US Holiday, FX was the main trading ground.
The USD Index gave up some ground and fell back below 110, EURUSD rose to 0.9960, GBPUSD gained to 1.1580 Gold is 1718 and Silver 18.30. Bitcoin remains low at below 20k. USDJPY rose to above 141 for the first time since the Asian currency crisis in 1998 sparking some fond memories among well aged FX traders.
Liz Truss will replace Boris Johnson as Britain's prime minister on Tuesday
Australia's central bank raised its rate 50 basis points to a seven-year high of 2.35%
US 10 Year Yields are at 3.24 and the EU one at 1.56.
The Energy situation remains the key focus in Europe and the struggle between Russia and the West is heating up. Russia demands that the sanctions are lifted before it supplies additional gas, Western Europe is planning massive bailouts for industry and the population in order to avoid large scale bankruptcies and unrest.
Today various PMI will be in focus with the EU at 9:30 and the US at 15:45 the most important, I believe that fiscal emergency measures may be more important.
It will be a very interesting ECB Meeting where the Central Bank is strongly expected to tighten while governments of the member states look to support the economy.
Remain nimble and consider optionality to avoid spikes in volatility – for trading as well as investing.
Tuesday: De Industrial Orders, EU and US PMI,
Wednesday: AU GDP, China Exports, DE Industrial Output, EU GDP, CA Care Decision,
Thursday; CH Unemployment Rate, ECB Rate decision, US Jobs data
Friday: CN PPI, CA Unemployment rate
Physically Settled Futures:
White Sugar - Oct 2022 (WV2) will expire 7th Sep at 9:00 GMT
Euro-BONO - Sep 2022 (FBONU2) will expire 7th Sep at 12:00 GMT
Euro-BTP - Sep 2022 (FBTPU2), Short-Term-Euro-BTP - Sep 2022 (FBTSU2), Euro-Bund - Sep 2022 (FGBLU2), Euro-BOBL - Sep 2022 (FGBMU2), Euro-Schatz - Sep 2022 (FGBSU2), Euro-BUXL - Sep 2022 (FGBXU2), Euro-OAT - Sep 2022 (FOATU2), will expire 7th Sep at 1500 GMT