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Tuesday, August 16

16th Aug - USD weakness






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EUROPE 
Bundesbank Floats Higher Retirement Age in German Pension DebateBB
Central bank discusses raising retirement age to 69 by 2060 * Alternative would be higher contributions as population ages

German govt: Turkey supports terror groups in Middle East Politico

Scenarios for Italian banks’ bad loansPictet

U.K. Inflation Accelerates as Pound Drop Boosts Import CostsBB


UNITED STATES
Dudley Says September Hike Possible, Markets Too Complacent – BB
US Dollar Jumps As Dudley Says “Sep Possible..Market Underpricing Hikes” – ZH
U.S. Stocks Decline With Treasuries After Dudley’s Rate Comments – BB
  
Fed: Industrial Production increased 0.7% in July – Bill McBride
Factory Production in U.S. Increases More Than Forecast – BB
U.S. industrial output rises 0.7 percent in July – Reuters

U.S. Consumer Prices Unchanged in July as Fuel Costs Ease – BB
Core CPI Remains Above Fed Mandated 2% For 9th Straight Month – ZH
U.S. consumer prices unchanged; underlying inflation slowing – Reuters


Housing Starts Jump On Spike In Rental Units As Permits Decline – ZH
Housing Starts in U.S. Climbed to a Five-Month High in July – BB
U.S. housing starts rise to five-month high in July – Reuters


OTHER
Martin Enlund: USD: Donald Won’t Dent The DollarNordea
The Fed has had to reconsider a lot of things over the past two years. Having come a far way, the need for further “great reassessments” should be limited. Abating risks for the central bank should instead pave the way for some mildly USD-supportive repricing of the Fed, but watch out for an October surprise…

US Dollar Dives To 3-Month Lows As Rate-Hike Odds SlideZH

 
REGULARS
Danske DailyDanske Bank

Eye-Opener Nordea
S&P500 at new high, JPY jump dents sentiment, Williams calls for rethink * Today’s calendar: US and UK July CPI prints; German ZEW * JPY jumped to a one-month high during Tokyo lunchtime * London banks won’t ”wait around”

Morning MarketsTF
Today's Asian session showed both equities and the safe-haven Japanese yen moving upwards with the action in USDJPY putting the 100.00 handle in sight.

Euro wrap-upDaiwa

Daily Market CommentMarc Chandler
Dollar Slumps, but Driver may Not be so Obvious

Daily Market CommentMacro Man
Pump up the volume?

Daily Shot TF
The recent spike in emerging market assets has driven equities and currencies higher largely on fund inflows.

Daily Press SummaryOpen Europe
No 10 says “full weight of the machinery of government” has been put behind Brexit * UK consumer prices tick up slightly but producer prices show bigger jump post Brexit * Bloomberg: Investment banks will not wait for Brexit deal * Inquiry launched into how best to protect rights of EU citizens in UK following vote to leave EU * Resolution Foundation: Any wage increase due to reduced migration outweighed by reduction in real incomes from Brexit * Bundesbank expects Brexit vote to have only “limited” impact on German economy

Brussels PlaybookPolitico
French cabinet’s battle Royal — Ukraine simmers — Germany’s black-green coalition

US OpenZH
Tumbling Dollar Sends USDJPY Under 100, Oil Over $46 As Gold Spikes; Futures Flat

FrontrunningZH

FX Update TF
The San Francisco Fed’s Williams published a piece yesterday arguing in favour of a rethink of Fed policy with a possible fiscal or nominal GDP targeting approach. The USD is weaker with USDJPY pushing down toward the key 100.00 level and EURUSD at post-Brexit vote highs.

From the Floor TF
Dollar weakness has USDJPY poised over 100.0 and gold edging higher.


FINNISH
AamukatsausNordea
Uusi jääkausi uhkaa euroaluetta * New Yorkin teollisuuden luottamus laski vastoin odotuksia * Saksan rahoitusmarkkinoiden luottamus (ZEW) palautuu Brexit-äänestyksen jäljiltä * Korkomarkkinoilla seurataan Fedin Lockhartin puhetta

Virallista mollia Sakari Heikkinen