Economics

The euro is trading at its lowest level against the Norwegian krone since August 2015.  The euro is near its best levels against the Swedish krona in nearly as long. 

True to its recent habit, the US dollar is finishing the week on a firm note.  On the month, though, the greenback has fallen against most of the majors, but sterling, the Canadian dollar, and the Swedish krona. 

Let's admit that the monthly non-farm payroll report is among the most difficult for economists to forecast.  There are not many reliable inputs as it is the first piece of real sector data for a new month. 

Nevertheless, it is an important piece of economic data, and which, as we saw earlier in the year, a significant downside miss could freeze the Fed.  

The US dollar has firmer against most major and emerging market currencies.  It remains well within its well-worn ranges, which continue to be narrow.  A notable exception today is the yen's weakness. 

The US dollar is enjoying a firmer bias today, but it remains narrowly mixed on the week.  It is within well-worn ranges.  Of the several themes that investors are focused on, there have not significant fresh developments. 

The Japanese business community is increasingly pessimistic about the Japan–China relationship. For the past three years the US-based Center for Strategic and International Studies (CSIS) and the Japan-based Nihon Keizai Shimbun (Nikkei) have surveyed Japanese business people about their attitudes to the bilateral relationship with China.

Results from the most recent 2016 survey, released in July, reflect a Japan that has grave fears about the political, security and economic dimensions of the relationship with its most important neighbour.

When President Barack Obama said, ‘The TPP means that America will write the rules of the road in the 21st century’, he was not speaking metaphorically. Large passages in the final text were lifted verbatim, sometimes en masse, from past US free trade agreements (FTAs).

The US dollar is narrowly mixed.  The euro, yen and Swiss franc are higher, while the dollar-bloc and sterling are softer.  The moving element here is not so much the greenback, which serving more as a fulcrum, but idiosyncratic, country-level developments. 

The major central banks have placed down their markers and have moved to stage left.  There are the late-month high frequency data, which pose some headline risks in the week ahead.  The focus for most investors will be on several political developments.

The recently concluded 28th and 29th ASEAN Summits in Vientiane, Laos again saw ASEAN give a muted response to the more contentious issues facing member states. This is largely a result of conflicting national interests between members in the absence of a cohesive framework to deal with such issues.