One could think that the dollar will continue the appreciation after two important FOMC members (S. Fischer and D. Lockhart) said in interviews in Jackson Hole that US economic data remain solid and despite market turmoil rate hike in September is not off the table. However we see that USD losses especially vs JPY and EUR so the situation is similar to one from previous Monday however the scale is incomparable.
Both European and US equities are declining today as Chinese institutions reduced limits which they will use to purchase stocks on China's stock market. Nearly 90% of SP500 stocks drop,the Energy sector once again suffers most. NZD and AUD are still the worst performing currencues after ew Zealand Prime Minister John Key said today during the press conference economy may face hurdles due to problems on dairy market and weak global outlook on developments in China.
Oil prices are correcting the surge we have seen last week. WTI and Brent are losing -3.28% and -2.94% respectively. The Yemen - Saudi Arabia conflict contributed to the surge of oil prices on Thursday and Friday.
An air strike from a Saudi-led coalition killed 36 civilians working at a plan in northern Yemen. German Chancellor Merkel delivered speech: here.The most notable data today was the Chicago PMI. It came slightly below expected 54.5 at 54.4 but the reading still point to expansion. US - ISM Milwaukke surprised to the downside as well. However it did not support the USD. ECB's also published PSPP report,