Here is what you need to know on Monday, September 2nd:
– EUR/USD below 1.1000, despite US data, failed to impress. Comments from ECB’s top official Olli Rehn smashed the EUR as opposed to what Knot said earlier in the week, he said that the central bank should come up with an “impactful and significant” stimulus package in its September meeting, that should exceed investor’s expectations.
– A new round of U.S. tariffs on some Chinese goods is scheduled to take effect on Sunday. Risk-off could take over.
– Over the weekend, Michael Gove, the UK minister in charge of planning for no-deal, insisted that there would be no food shortages in the UK in the case of a hard Brexit, but refused to rule out the possibility that the government could ignore any law passed by parliament to stop a no-deal Brexit, outraging MPs from both sides. Brexit jitters likely to keep Sterling pressured.
– China released the August NBS Manufacturing PMI which fell to 49.5 down from 49.7 previously, and the Non-Manufacturing PMI which improved to 53.8 from 53.7 previously, beating the market’s expectations. China will publish the Caixin Manufacturing PMI, foreseen at 49.8 from 49.9.
– Oil prices came under pressure after the Russian Energy Minister Alexander Novak said that the country’s oil output cuts in August would be slightly below those agreed with OPEC+.
– Gold eased on a better market mood, held above 1,500 as fears about a global economic downturn prevail in the background.
– Cryptocurrencies remained depressed throughout the weekend.
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