Today's indicator schedule and key points (September 12) ~ Big event eve! A market with a hard-to-catch direction!? ~

◎ Economic Indicator Schedule

9/12 (Wednesday)

09:30 AUD Westpac Consumer Confidence
16:00 EUR Spain HICP
18:00 EUR Euro Area Employment Change & Unemployment Rate
21:30 USD PPI (Producer Price Index)
22:30 USD Bullard, Saint Louis Fed President speech
23:30 USD Crude Oil Inventories

9/13 (Thursday)

01:45 USDBrainard, Fed Governor speech
02:00 USD10-year Treasury Note Auction
03:00 USDBeige Book (Federal Reserve District Economic Report)
10:30 AUD Employment Change & Unemployment Rate

◎ Today’s Highlights

1）Brexit-related Headlines

Recently, Brexit renegotiations have been moving the pound significantly.The pound has already priced in negative factors, so it tends to react sensitively to good news.However, it can rise rapidly and also fall quickly, so caution is needed. Headlines alone can spur sharp rises followed by declines on negative remarks. This is common. Also, yesterday’s late-day drop was reportedly due to an order flow. Today I will watch headlines as well.

↓↓↓ Please also refer to this ↓↓↓

From a Pound Rally to a Quick Selloff! The Background of the Pound’s Sharp Moves

GBP/JPY Daily Chart

GBP/JPY Intraday Chart

2）NAFTA Renegotiation, China Trade War

NAFTA renegotiation has again been delayed. The automotive tariff and dairy are cited as bottlenecks. Negotiations are said to resume over the weekend, but Mexico is signaling it might accept a bilateral deal. In the China trade war, tariffs worth up to about $200 billion have not yet been imposed. When they will be imposed is closely watched. Yesterday China reportedly filed a complaint with the WTO in retaliation... comments on trade remain crucial until the U.S. congressional elections.

◎ Positions and Strategy

Since yesterday, Short EUR/USD positionand Short AUD/USD position remain held. Tomorrow is a big event day! Three highly watched central banks—Turkey, the UK, and the EU—will announce policy decisions. Many other economic indicators will also be released, so I plan to adjust positions and observe today.

The market itself is likely to be directionless or hard to gauge.

◎Recording Room

We record currency strength, stock prices, long-term interest rates, and remarks by key figures.

↓↓↓ For September 7th, please refer to the following. ↓↓↓

Record Room for September 11, 2018 — Key Figures and Long-Term Rates