EurUsd kicked off at 1.1115, drifted lower from high 1.1118 – regional bids kick in from 1.1045 but decent below 1.0850 (though far, comes from an interesting name). Sellers atop 1.1190. Throughout the morning, Euro stayed in the 1.10-ninties. Market will be looking out for performance of the European stocks. From what I read, if the stocks continue to weaken, EurUsd should get some support as investors unwind short hedges. Seller orders are mentioned at 1.1190 and higher; some chatter of bids at 1.1050.
General chatter that Japanese oil importers bought UsdJpy this morning along with one mid-sized lifer. Macro names are on the offer at 124.50 while exporters hover above 124.90. Japan Q2 GDP growth, though better than expected, it was weaker than previous quarter. In addition, private consumption and business spending weak too.
Member of Bank of England MPC Kristin Forbes argued that BOE should raise rates well before inflation hits 2% target; however timing depends on more evidence on inflation trend. Forbes wrote in The Telegraph said maintaining interest rates at the current low levels during an expansion risks creating distortions. Therefore, interest rates will need to be increased well before inflation hits our 2% target.
Seeing spot Gold slowly edging higher since open, high 116.80. On Sat, China released a report that it’s gold reserve rose 1.16% to 1,677.3 tonnes at the end of July from 1,658 tonnes the end of June.