• Foreign exchange market. Asian session: the European Central Bank’s interest rate cut weighed on markets

Market news

5 September 2014

Foreign exchange market. Asian session: the European Central Bank’s interest rate cut weighed on markets

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:15 U.S. FOMC Member Richard Fisher Speaks

01:00 U.S. FOMC Member Narayana Kocherlakota

05:00 Japan Leading Economic Index July 105.5 107.2 106.5

05:00 Japan Coincident Index July 109.7 109.9

05:00 Japan BoJ monthly economic report

06:00 Germany Industrial Production s.a. (MoM) July +0.3% +0.5% +1.9%

06:00 Germany Industrial Production (YoY) July -0.5% +2.5%

07:00 Switzerland Foreign Currency Reserves August 453.4 453.8

08:30 United Kingdom Consumer Inflation Expectations Quarter III +2.6% +2.8%

The U.S. dollar traded mixed against the most major currencies. The greenback climbed yesterday as European Central Bank (ECB) lowered its interest rate. The central bank also cut its deposit facility rate to -0.20% from -0.10% and its marginal lending rate to 0.30% from 0.40%.

The ECB President Mario Draghi said the central bank will start buying asset-backed securities, including covered bonds. Details of the asset-backed securities (ABS) program will be announced later.

The Fed Governor Jerome Powell said the U.S. labour market has "improved substantially".

The New Zealand dollar traded mixed against the U.S dollar in the absence of any major economic reports from New Zealand. The kiwi declined against the U.S dollar yesterday as the European Central Bank cut its interest rate.

New Zealand's Finance Minister Bill English said in an interview today that he expects the kiwi to decline further as the U.S. economy recovers.

The Australian dollar traded mixed against the U.S. dollar. The ECB's interest rate cut weighed on the Aussie.

The AiG Performance of Construction Index rose to 55 in August from 52.6 in July.

The Japanese yen traded mixed against the U.S. dollar. Japan's leading economic index increased to 106.5 in July from 105.5 in June, missing expectations for a rise to 107.2.

Japan's coincident index slightly rose to 109.9 in July from 109.7 in June.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

12:30 Canada Employment August 41.7 10.3

12:30 Canada Unemployment rate August 7.0% 7.0%

12:30 U.S. Average hourly earnings August 0.0% +0.2%

12:30 U.S. Unemployment Rate August 6.2% 6.1%

12:30 U.S. Nonfarm Payrolls August 209 222

14:00 Canada Ivey Purchasing Managers Index August 54.1 55.7

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