Sterling remains under heavy pressure

Monday, September 08, 2014

China’s imports fell for the second consecutive month in August, showing a decline of 2.4% against expectations of a 3.0% increase. Investors remained cautious about whether Chinese authorities will start loosening policy further to revive domestic demand. Exports increased by 9.4% in August beating expectations of 9.0%. The Hang Seng index retreated near 100 points (-0.4%) overnight, reacting to the tepid Chinese economic data. The Nikkei Index edged slightly higher, adding more than 0.2% to retest 15,700.

European equity markets opened the trading session lower this morning, while the euro remained under pressure around 1.2950. Germany’s imports fell by 1.8% in July, missing expectations of a 0.2% rise. Exports surged by 4.7% in July compared to 0.9% in June, beating strongly expectations of 0.6%. However, the DAX opened the trading session slightly lower this morning, following the recent strong gains.

Energy: Brent front month futures remained under pressure below $101 per barrel in early trading this morning following the recent poor US employment data. The strong USD has also weighed on market sentiment offsetting any possible optimism from the stronger than expected Chinese exports.  

Brent Front Month Futures

CO1 Comdty (Generic 1st 'CO' Fut 2014-09-08 09-38-59

GBP weakened to its lowest in nearly 10 months - trading around $1.6168- following concerns about possible political uncertainty after an opinion poll showed supporters of Scottish independence from Britain have been taking the lead for the first time since the referendum campaign began, according to Thomson Reuters.

GBPUSD weakended to the lowest level in almost 10 months

GBPUSD Curncy (GBP-USD X-RATE)   2014-09-08 09-38-25

 Events for today:

 

0050

JP

Q2

GDP

0245

CN

Aug

Imports/ Exports

0700

DE

Jul

Trade Balance

0930

EZ

Sep

Sentix Index

1500

US

Jul

Employment Trends

2000

US

Jul

Consumer Credit

 

All times UK Local Time

 

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