Currency Update

Focus on UK PPI and Fed Speakers

Yen and Swissy are mildly higher on risk aversion as the week starts. Meanwhile, dollar remains weak in tight range. UK PPI inflation will be the main featured economic data today. No US economic data is scheduled and markets focus will likely turn to Fed speakers including Lockhart, Yellen, Fisher and Mishkin. While a cut is widely expected, opinions on whether it will be 25bps or 50bps, or whether there will be an inter-meeting cut, is divided. Fed speakers will continue to be focus of the markets.

UK PPI input is expected to have another monthly drop of -0.2% mom while yoy rate is expected to be 1.9%. PPI output is expected to rise 0.2% mom, 2.5% yoy in Aug. Released in Asia, Japan Q2 GDP final print revised further lower than expected to -1.2% annualized rate, with qoq rate down to -0.3%. Though, the yen remains supported by risk aversion.