A quiet start to the trading week, with no major data releases, allowing markets to focus back on the Jackson Hole Symposium. The Fed indicated that QE tapering would begin soon, but interest rates would remain at record lows, confirming a continuity of highly liquid markets. The Dallas Fed Manufacturing Index crashed and US Pending Home Sales also fell, to an annualised 8.5%. EU Consumer Confidence contracted 5.5%, while German inflation was 3.9%. The Dollar was steady, with the EUR below 1.1800, while the GBP drifted back to 1.3750.
Japanese Retail Sales rose to 2.4%, as markets look to a plethora of economic data releases coming this week, culminating in the US Employment numbers and Non Farm Payrolls. A major storm, Ida, blew through Louisiana, over the weekend and the political fall-out surrounding the disastrous Afghan surrender continues to play out across the globe. Tensions are on the rise. The AUD remained below 0.7300, while the NZD looks to regain the Big number, 0.7000. Australian inflation data and NZ Business Confidence numbers, are likely to drive local market trade.