* Markets retrace yesterday’s gains
* Singapore manufacturing weaker than expected in July
* We recommend selling long-end USDINR volatility
* We revised our USDBRL forecasts to 2.0 in three months and 12 months
What to watch for today
GBP: Growth revisions. Better-than-expected production, construction and retails sales data for June suggest 2Q GDP is very likely to be revised higher today from the initial -0.7%qoq estimate. The consensus is for a +0.2%qoq revision, while our economists are looking for a stronger +0.3%qoq surprise. With a key source of support coming from reserve manager demand, we remain bullish on sterling versus the EUR and we continue to hold a EURGBP put option in our derivatives recommendations portfolio.
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Credit Suisse