Morning Call Script - 07 Sept 2023
Overnight asset drivers + the impending data calendar
As we enter a new trading month, @HarksterHQ is happy to announce the evolution of its content offering. Of course, The Morning Hark will continue to arrive in your inbox around 8am London, and we would like to take this opportunity to thank the ~16k loyal subscribers for their support. Going forward, we will also be adding Harkster's Morning Call Script. This will focus on the overnight asset drivers and the impending data calendar. It will be particularly useful for those presenting on morning calls on the sell and buy side. Publication Time: 6:30 - 6:45am.
What's Moved:
Data: China's trade data was better than the markets low expectations but still deep in contraction territory. Exports were -8.8% YoY vs exp -9.2% (prior -14.5%) whilst imports dropped 7.3% vs exp -9% (prior -12.4%).
BoJ Nakagawa speech focused on maintaining ultra loose policy (USDJPY approaching 10month low just shy of 148) whilst in his last appearance as Governor, RBA's Lowe focused on lifting productivity to help return inflation to target. (Some Closing Remarks)
FX: 10-20bps ranges for the majors, with EURUSD for example consolidating around 1.0720 and holding on to the gains the USD received from the strong ISM prints. There was further pressure on high beta pairs with GBPUSD sub 1.25 following Bailey's rate comments to the Treasury select committee whilst AUDUSD (0.6365) and NZDUSD (0.5870) were under the most pressure following the Chinese data. PBoC continue the fixing fight against USD strength, 54 straight days is now the longest streak of stronger than expected fixings (BBG).
Equities: Heavy close for wall street has fed into Asian stocks, with Chinese data also weighing on sentiment.
Crypto: maintaining its fight to find support sub 26k
The Day Ahead:
GBP (07:00): Halifax House Price Index
EUR (10:00): GDP Growth Rate 3rd Estimate
USD (13:30): Initial Claims
USD (13:30): Unit Labour Costs QoQ
CAD (15:00): Ivey PMI
USD (15:00): Fed Harker
CAD (19:10): BoC Gov Macklem
USD: Fed Williams (20:30), Bostic (20:45) and Bowman (21:55)
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