Wednesday was another day of underwhelming performance across
markets, with equities and currencies remaining locked within their
tight ranges (USDCAD moved a whopping 20 points all day). Unfortunately,
we could be in for the same fate today, as everyone seems content to
wait on Ben Bernanke’s next move from Jackson Hole tomorrow. The Fed
Beige Book was released
yesterday
and, surprise surprise, it highlighted that the economy was expanding
gradually but still at a pace that is far too slow for the Fed’s liking.
US Unemployment Claims came in essentially unchanged at 374K
this morning, while Personal Spending came in on expectations with a 0.4% rise.
The euro is getting a bit of a bid
this morning
on the back of a strong Italian bond auction and comments from Chinese
Premier Wen reaffirming his faith in euro zone bonds. The Australian
dollar has pushed through its 50-day moving average to the downside, and
now looks vulnerable to further falls. Oil is hanging around the $95
level as we wait to hear if there is any significant damage to the
Gulf’s oil-producing assets from Hurricane Isaac.
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