The USD is on the Move ahead of Trump Addressing the General Assembly

With stats on the lighter side and trade war chatter hitting the markets, Trump’s speech to the General Assembly at the UN could ruffle a few feathers.
Bob Mason

Earlier in the Day:

It was another quiet Asian session on the data front, with no material stats released, the BoJ monetary policy meeting minutes from the August meet the only thing for the markets to consider, which were not only dated, following last week’s BoJ meeting, but also delivering nothing new.

The Japanese Yen moved from ¥112.806 to ¥112.787 against the U.S Dollar upon release of the minutes, before easing to ¥112.84, down 0.04% for the session, trade war jitters and geo-political risk driving demand for the U.S Dollar through the session, the Yen up against the rest of the majors.

Things were not much better for the Kiwi Dollar and Aussie Dollar. The Kiwi was down 0.12% to $0.6637 at the time of writing, with the Aussie Dollar down 0.11% to $0.7244, risk aversion and U.S Dollar strength leading to the pull back through the morning.

In the equity markets, with the HK market closed, it was catch up for the Chinese equity markets following Monday’s holiday, the CSI300 down 0.94% at the time of writing, news of Beijing announcing that Chinese representatives would not meet U.S officials, if the U.S continued to roll out tariffs, doing the damage. The ASX200 was also in the red, down 0.14%, the big-4 banks weighing as market risk appetite continued to ease through the start of the week.

For the Nikkei, things were on the brighter side, the index up 0.17% supported by a pullback in the Yen, though things could change dramatically later in the week should trade talks between Trump and Japanese Prime Minister Abe go badly.

The Day Ahead:

For the EUR, there are no material stats scheduled for release through the day to provide direction, leaving the EUR in the hands of the Oval Office and market risk appetite, a surge in the Dollar off the back of increased trade tension between the U.S and China doing the damage through the early part of this morning.

At the time of writing, the EUR was down 0.09% to $1.1737, with trade and geo-political risk likely to be the key drivers through the day.

For the Pound, there are also no material stats scheduled for release, leaving the Pound firmly in the hands of Brexit news, lingering hopes of a deal providing some support for the Pound, though Monday’s gains will have come off the back of continued in-party support for British PM Theresa May and the Chequers plan that got roasted by EU leaders last week.

At the time of writing, the Pound was down 0.12% to $1.31.04 with Brexit chatter the key driver through the day.

Across the Pond, July house price figures and September consumer confidence numbers are due out of the U.S, with consumer confidence numbers the key driver for the U.S Dollar, forecasts on the softer side, but still good enough to leave the Dollar unscathed.

House price figures may be of more interest as the markets look for any signs of a shift in the direction of the U.S economy, the real estate sector considered a barometer and the housing sector under a bit of pressure as mortgage rates climb.

Outside of the stats, U.S President Trump will be delivering a speech to the General Assembly at the United Nations later in the day, which will certainly have some influence, trade war jitters driving the Dollar through the early part of the day.

At the time of writing, the Dollar Spot Index was up 0.16% to 94.334, with consumer confidence figures and ultimately Trump the key drivers through the day, any ruffling of feathers at the UN likely to drive demand for the Dollar.

For the Loonie, it’s a quiet day on the data front, with no material stats scheduled for release, leaving the Loonie in the hands of NAFTA, the gathering at the United Nations giving Canadian Prime Minister Trudeau an opportunity to corner Trump to get talks moving, the Trump imposed 30th September deadline rapidly approaching.

At the time of writing, the Loonie was down 0.05% to C$1.2962 against the U.S Dollar.

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