North American FX Open - Fed's Kashkari "weaker job market should open the door to a Sep rate cut"

The Dollar can't seem to shake off those comments from the Fed's Goolsbee on Friday nor the weak housing data that followed soon after. Goolsbee stated that some leading indicators of a recession are flashing warnings signs and that when the labor market starts to turn, it tends to worsen fast. However, Goldman Sachs have shaved their recession probability to 20% from 25%, "mainly because the data for July and early August released since August 2 shows no sign of recession."

Usd/Jpy is showing no signs of becoming less volatile, with the pair slumping from 148.05 down to 145.19 in overnight trade, before recovering back up to 146.51.

Fast money accounts have been spotted buying the Yen amid rising two-year JGB yields, as players prepare for national CPI and BOJ Governor Ueda's appearance in front of parliament on Friday.

The FT meanwhile cites the Fed's Daly, who stated that recent US economic data have given her "more confidence" that inflation is under control and that it’s time to consider adjusting benchmark borrowing costs, but the economy is "not in an urgent place."

In the WSJ, the Fed's Kashkari argued that the weaker job market should open the door to a September rate cut and that progress is being made on inflation.

Overnight, the UK Aug Rightmove House Prices fell -1.5% m/m vs -0.4% prior.

Japanese June Core Machine Orders rose 2.1% m/m vs the 0.9% consensus while NZ Jul Performance Services Index came in better at 44.6 vs a revised 40.7 last.

The markets are already looking ahead to the Jackson Hole Symposium that has Fed Chair Powell scheduled to speak on Friday.

For today a light events calendar awaits, with the US Leading Index the sole release, but we do hear from the ECB's Waller.

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