Developed macro
1. EFSF approvals fail to provide a lasting boost to sentiment as peripheral worries and growth concerns remain elevated After Germany yesterday, Austria is expected to approve the EFSF 2.0 today
2. Eurozone HICP inflation is likely to surprise to the upside by rising to 2.7% YoY
3. August personal income and spending figures to rise. Core PCE deflator was likely up 0.2% matching the gain in the core CPI.
4. Japan’s core CPI inflation rate edged up and industrial production increased in August.
Interest rate strategy
1. Still cautious on recent risk-on moves. 10Y Bund and T-note around 2%; could wait for key events next week to make decisive directional move
2. Money market tensions still elevated despite risk-on market mood
FX strategy
1. Less trauma in Germany is not sufficient to sustain a EUR rally.
2. US data has not been awful, which has eroded the USD safe-haven bid.
3. GBP capitalising on diversification chatter, but QE2 looms large.
Emerging markets
1. Weak Korean August production suggests no rebound in activity yet, not boding well for regional outlook
2. Taiwan central bank’s status quo decision marks the end of its hiking cycle
3. Russia: Q3 C/A surplus to narrow to USD 11.3bn, pressuring the RUB
Commodity markets
1. US crude stocks increased last year
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http://www.easyforexnews.net/wp-content/uploads/2011/09/WMT_2011-09-30.pdf
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