Morning Briefing September 10th 2019

Tuesday throws up mainly second tier data, although the UK’s latest jobs report will be closely watched.

The European calendar gets underway at 0630 BST with the publication of French payrolls, followed by the French industrial production data at 0645 BST. Sweden’s August inflation report will be released at 0830BST, with Italian industrial production due at 0900 GMT. The UK Labour market survey will be released at 0930 GMT, with focus expected to fall on the latest wages data.

Across the Atlantic, the US calendar kicks off at 1100 BST with the release of the NFIB Small Business Optimism Index. Canadian housing starts will be released at 1315 BST, followed by Canadian Building Permits at 1330 BST. Back in the US, the Redbook Retail Sales Index will be published at 1255 GMT,followed by the JOLTS data at 1400 BST.

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Global EconomicTrading Calendar

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Contained ranges were generally in play for the G10 crosses during Asia-Pacific. Headlines were relatively limited as the latest trade war overtures from Trump & Chinese state media offered little in the way of clarity on the well discussed matter. Soft Aussie business confidence data & worries re:Chinese producer price deflation provided the headlines of the regional data docket.

NZD was the marginal outperformer amongst G10. AUD/NZD continued its pullback from the NZ$1.0700 region. The 2-Year AU/NZ swap spread sits a touch back from the recent high, much like the AUD/NZD cross.

USD/JPY ran into some headwinds at Y107.50, with talk of corporate sell orders tiered in around there. Also worth flagging that the 38.2% retracement of the move from Y112.40 to Y104.46 is situated at Y107.49.

Elsewhere, GBP was well behaved as the suspension of parliament came into play and PM Johnson failed to force a snap election through the Commons, as expected.

Swedish & Norwegian CPI data provides some early interest in European hours, with UK labour market data also due.

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