End of Summer(s)September 26, 2013 Posted by: Minh Trang
The fireworks started over the weekend as former US Treasury Secretary (and front‐runner to replace Ben Bernanke as Fed Chairman) Larry Summers, withdrew his name from consideration for the post in a letter to President Obama. With Summers out of the running, the USD moved lower and equities moved higher. There seemed to be a view (largely unsubstantiated) that he would have been hawkish because he didn’t think quantitative easing was very effective. In any event, Yellen now jumps to the top of the list. Over the weekend, we also saw Syria agreeing to a US‐Russian pact to eradicate it’s chemical weapons by the middle of 2014. Overall, the USD traded to its lowest level in month. The GBP jumped to an 8 month high. INR continues its rebound to a 1 month high and KRW trades near a 6 month high.
U.S. August industrial production grew 0.4% (median 0.5%).
Canada existing home sales rose 2.8% m/m in August on a seasonally adjusted basis.
Brazil raised the their 2013 growth forecast to 2.4% from 2.35%.
Nymex crude headed towards $106 bbl after it fell more than 1.3% in the wake of the Russia and U.S. agreement on Syria.
Stock markets rallied on news that Summers withdrew his candidacy for Fed Chairman.
ECB's Draghi repeats rates to remain at present or lower levels, as the economy remains weak.
9/17 GBP: CPI and PPI (Aug.)
9/17 AUD: Conference Board Leading Index (July)
9/18 GBP: Bank of England Minutes
9/18 USD: Federal Open Market Committee Rate Decision
9/19 CAD: Wholesale Trade Sales (July)
9/20 CAD: Consumer Price Index (Aug.)
9/23 EUR: PMI Eurozone (Aug.)
Latest Low High % Change Day
EUR 1.3356 Range 1.3295 to 1.3385 0.47%
GBP 1.5934 Range 1.5871 to 1.5962 0.37%
CAD 1.0317 Range 1.0279 to 1.0357 ‐0.37%
JPY 98.88 Range 98.53 to 99.48 ‐0.47%
CHF 0.9254 Range 0.9222 to 0.9301 ‐0.52%
AUD 0.9347 Range 0.9253 to 0.9387 1.08%
RUB 32.2767 Range 32.17 to 32.44 ‐0.60%
INR 62.84 Range 62.44 to 62.88 ‐0.84%
CNY 6.1208 Range 6.1162 to 6.1208 0.02%
BRL 2.2733 Range 2.247 to 2.2745 ‐0.31%Read More