COME SEPTEMBER: US Fed hints at a rate hike in September, all eyes on Friday Jobs data
QUOTE: Good companies hire good people and motivate them; Great companies hire motivated people and inspire them
MARKET PULSE

  • Fed Atlanta President Lockhart "Fed is close to raising rates in Sep."
  • USD Index rose for a 3rd day to the highest level since March
  • Forecast: U.S. payrolls up by 225,000 in July, vs. 223,000 in June
  • Forecast: US Jobs up more than 200,000 for a third month in July
  • IMF: Significant work remains on review of yuan in SDR
  • IMF: Any change in SDR basket by Sept. 30, 2016
  • NZD topper with 16 % slide against USD -year to date
  • CAD and AUD fall more than 10 % in 2015
  • Gold drops for a 6th consecutive week
  • INR weakened 0.8 % last month, the most since April-15

INDIAN INRMARKETS

  • INR falls 0.3% to 63.9300 per USD
  • 1-Month implied volatility falls 28 bps to 5.9150%; average 12 months is 6.6955%
  • INR 1-month. forwards fall 0.3% to 64.26 per USD
  • INR weakened 0.8 % last month, the most since April-15
  • USD/INR rebounds from 50-day moving average at 63.7538
  • USD/INR support at 63.6338, 63.5163 and 63.1701
  • USD/INR resistance at 63.9800, 64.2087, and 64.5549

FACTORS

  • Global investors bought net $67.2 m of Indian stocks on Aug 3
  • India's leading stock index Sensex fell 0.4% yesterday
  • Nikkei-Markit services and composite PMIs for July scheduled to be released
  • HSBC sees space for at best a final 25 bps cut in 4Q,
  • Fed Atlanta President Lockhart "Fed is close to raising rates in Sep."

FOREIGN EXCHANGE
MARKETS

  • USD/JPY +0.02% at 124.41 (range 124.27-124.48)
  • EUR/USD -0.19% at 1.0861 (range 1.0848-1.0894)
  • AUD/USD -0.19% at 0.7366 (range 0.7355-0.7384)
  • USD/CAD -0.02% at 1.3190 (range 1.3185-1.3213)
  • GBP/USD -0.17% at 1.5538 (range 1.5526-1.5570)
  • USD/CHF +0.01% at 0.9786 (range 0.9776-0.9791)

FACTORS

  • Today: final euro-zone service, composite PMIs to be released
  • IMF: Significant work remains on review of yuan in SDR
  • IMF: Any change in SDR basket by Sept. 30, 2016
  • U.S. Treasuries decline, with 10-year at 2.241%
  • Forecast: US Jobs up more than 200,000 for a third month in July
  • NZD topper with 16 % slide against USD year to date
  • CAD and AUD fall more than 10 % in 2015

GOLD
MARKETS

  • Gold spot lost 0.3 % to $1,084.70 and was trading at $1,086.47 in Asia
  • Gold drops for a 6th consecutive week
  • Gold futures for December dropped 0.5 % to $1,085.70
  • China: Gold fell 0.5 % to 217.10 yuan/ gram ($1,087.42 /ounce) on SGE
  • Silver spot lost 0.4 % to $14.55

FACTORS

  • USD Index rose for a 3rd to the highest level since March
  • Forecast: U.S. payrolls up by 225,000 in July, vs. 223,000 in June