European FX Open - USD/YEN bases post-NFPs for now at 141.78

The USD finds itself firmer across the board at the start of the week, perhaps in part due to a perceived lack of investor appetite for a larger -50BPs Fed rate cut in September even after Friday's headline NFPs miss.

USD/YEN hit a comeback high of 143.09 overnight after Japan final Q2 GDP just missed expectations at 2.9% annualised q/q vs the 3.2% consensus and 3.1% last. The growth miss seemingly does not derail chances of another BOJ interest rates rise before year-end, however.

All US stock futures sit in positive territory at the time of writing, but AUD/USD looks independently weighed by iron ore hitting a 22 month low, south of Usd 90 per ton amid a drop in demand from biggest buyer China.

Meanwhile, it's a quiet start to the events weeks today.

This morning, Swiss sight deposits and the EMU Sentix investor confidence lead.

In the second half, the NY Fed 1-year inflation expectations for August should garner some interest. Last time out, it came in at 2.97%.

Also overnight, China CPI and PPI for August also missed expectations, at 0.6% y/y and -1.7% y/y respectively. Bbg wrote after China’s core inflation cooled to the weakest in more than three years, adding to signs the admin is struggling to get households spending; further putting the annual 5.0% growth target under pressure and boosting the case for stronger stimulus.

Meanwhile, Republican candidate for the US presidency Donald Trump pledged to slap a 100% tariff on goods from countries that shun the USD and according to a NYT-Siena College poll he leads Kamala Harris 48% to 47%, suggesting the VP’s initial wave of support may be stalling.

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