Market Summary
- Fed member, Lael Brainard delivered a speech at the Chicago Council of Global Affairs yesterday
- Brainard’s comments were dovish as she maintained that the case for rate hikes was less compelling
- China industrial production and retail sales improve in August
- Germany inflation flat in August, HICP unchanged at 0.30%
- Sweden inflation rate steady at 1.10% in August
- UK consumer prices remain steady in August at 0.60%
- UK PPI output rises 0.80% in August
Today’s Economic events
- Japan BSI manufacturing index 2.9 vs. -6.5
- Australia NAB business confidence 6 vs. 4 previously
- China industrial production y/y 6.30% vs. 6.20%
- China fixed asset investment ytd/y 8.10% vs. 7.90%
- China retail sales y/y 10.60% vs. 10.20%
- Germany Final CPI m/m 0.0% vs. 0.0%
- German WPI m/m -0.70% vs. 0.10%
- Switzerland PPI m/m -0.30% vs. -0.20%
- Italy industrial production m/m 0.40% vs. 0.20%
- UK CPI y/y 0.60% vs. 0.70%; Core CPI y/y 1.30% vs. 1.40%
- UK PPI input m/m 0.20% vs. 0.60%; PPI output m/m 0.10% vs. 0.30%
- Germany ZEW economic sentiment 5.4 vs. 6.7
- Eurozone employment change q/q 0.40% vs. 0.20%
- ECB President Mario Draghi speaks
Coming Up
- (NZD) Current Account
Brainard remains a staunch dove
The US dollar fell on late Monday, giving up most of the gains from last Friday after Fed Governor, Lael Brainard’s dovish comments at the Chicago Council on Global Affairs.
The Fed member, known to be dovish in her views on interest rates, reiterated that “the case to tighten monetary policy pre-emptively is less compelling, and the improvement in the labor market hasn’t had the desired effect on inflation.â€
Her comments saw the markets re-adjust from last week which saw some of the Fed members coming out hawkish and supporting a rate hike in the near-term. Joe Manimbo from the Western Union said, “Ms. Brainard was true to form, in a dovish sense, reinforcing the case for the Fed to move later rather than sooner. The dollar has tripped, but a lot still hinges on the Fed’s message next week.â€
