All eyes on Jackson Hole
What happened overnight
* Japan’s industrial production sharply weaker than expected in July
* German retail sales surprise weak in July
* Euro area HICP inflation prints above consensus at 2.6%yoy
* The Norges Bank announced it will purchase NOK500mn per day
Markets were in risk on mode ahead of Chairman Bernanke’s speech from Jackson Hole, with the USD reporting losses across the board against EM and G10 currencies alike. EURUSD moved sharply higher, topping out right below 1.26, in spite of a weak surprise in German retail sales. No specific piece of news or data supported the move, suggesting it was mostly driven by short covering. AUDUSD moved 0.5% higher to 1.0337, in line with the general risk tone of price action, USDJPY is trading with a slight downward bias, bottoming out at 78.40.
Click here to read the full report: FX Daily
Credit Suisse