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Daily Brief

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A resolution with Iran on the horizon?

USD

According to Bloomberg News, the U.S. is working on a diplomatic resolution with Iran, but President Trump is prepared to take other action if necessary. The President will be making a speech today at the General Assembly, with Iran as a main topic. Comments from that speech could affect the currency and equity markets.

EUR

German IFO Business Climate Index was released and came in at 94.6 for September. This was better than last month’s 94.3 and beat the consensus estimates at 94.5. The IFO Expectations Index, which shows firm’s projections for the next six months, came in at 90.8 for September, which was lower than the previous month’s reading of 91.3 and missed the consensus number of 91.8. Traders seem to be focusing more on the future predictions rather than the present number and, combined with yesterday’s awful PMI numbers, pressure remains on the EUR.

GBP

The UK Supreme Court have ruled that the decision by PM Boris Johnson to suspend Parliament was unlawful. The GBP initially rallied on this news break, but has slightly eased following. The court said that the government’s aim was to frustrate parliamentary debate on Brexit and to stop opposition to PM Johnson’s plans for the UK’s departure from the EU on October 31. Details on this will follow throughout the day. 

JPY

Japan trade negotiators are still aiming for a US trade deal by the end of the month. The key issue here will be the assurance by the US that there will be no tariffs imposed on Japanese cars. As long as there is no delay regarding this key component of the agreement, the deal will be signed.

CAD

The Canadian Dollar rallied following strong wholesale sales data announcement. According to Statistics Canada, wholesale sales rose for a second consecutive month in July, up 1.7 percent to $65.4 billion, which was above the expectation of 0 percent. Four of the seven sub-sectors, representing 64 percent of wholesale sales, reported increases; the personal and household goods sub-sector and the motor vehicle and motor vehicle parts and accessories sub-sector contributed the most.

CNY

US Treasury Secretary Mnuchin indicated that there would be high level trade talks with China in two weeks, when he will meet with Chinese Vice Premier Liu He. Mnuchin also said that the Chinese will be purchasing US farm products. It was also revealed that last week’s cancellation of Chinese official’s visit to US farms was based on a request by the US. Mnuchin said the timing wasn’t “perfect timing” for the trip, and that it will be rescheduled after the trade meetings.

 

USD: President is expected to discuss Iran in his speech before the General Assembly today

USD: President is expected to discuss Iran in his speech before the General Assembly today

EUR: Better IFO numbers fail to boost EUR

EUR: Better IFO numbers fail to boost EUR

GBP: UK Supreme Court ruled PM Johnson’s parliament suspension was unlawful

GBP: UK Supreme Court ruled PM Johnson’s parliament suspension was unlawful

JPY: US-Japan deal expected by the end of the month

JPY: US-Japan deal expected by the end of the month

CAD: Better than expected retail sales boosts the Loonie

CAD: Better than expected retail sales boosts the Loonie

CNY: High level trade talks scheduled to occur in two weeks

CNY: High level trade talks scheduled to occur in two weeks

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