Posted Sep 2, 23:44

September Themewatch

ISM Manufacturing Employment 58.1
ISM Manufacturing Prices 58.0
Net Exports of GDP (2Q) -0.90
Gross Domestic Product (Q2) (q/q) Sep 03 01:30
Gross Domestic Product (Q2) (y/y) Sep 03 01:30
58 minutes ago: 

Some good moves on the first trading day of the month leave us optimistic that volatility and the opportunities that it brings are back. We look at the dominant themes in the market at the moment. On Tuesday, the trio of EUR, CHF and USD far outpaced the rest of the market while finishing relatively unchanged against each other.  Our Premium subscribers received an alert prior to Today's NZ dairy auction, whose fresh decline in price fueled our Premium NZD shorts against CAD, JPY and AUD. Our Premium GBPUSD short is more than 100 pips in the green. See charts & trades details in the Premium Insights. Theme 1: US economic recovery and coming rate hikes

This is by far the dominant theme and the burgeoning USD bull market is the result. On Tuesday, the ISM manufacturing index rose to a 10-year high at 59.0 versus 57.0 expected. In many ways it's truly astounding that the Fed is still at 0% and printing $25 billion per month.

PREMIUM INSIGHTS Update: Sep 2, 14:27
USD Pattern Last seen in 1997 Sep 2, 2014 17:28: 

The US dollar index is set to post its 8th consecutive weekly increase, a pattern last seen in 1997.The tenacity of the US dollar rally is highlighted by an unusually broad advance, against each of the six components in the basket. Today's manufacturing ISM helped trigger those moves. Full charts & analysis here.


SNB: 3 years minus 5 days Sep 1, 2014 20:09: 

3 years minus 5 days, the Swiss National Bank delivered its stealth intervention to the cap the soaring franc as capital fled into the safety of the Swiss currency during the Eurozone debt. Now that EURCHF has fallen to 21-month lows, losing 5% from its 2013 highs, the SNB is back to reminding markets of its pledge to defend the franc and that the “environment has deteriorated for Switzerland”. What would this mean 3 days ahead of the ECB decision? Any impact on the already falling EURCHF? Will the ECB do the work for the SNB, or will the Swiss intervention army be deployed yet again? One of our CHF Premium trades is currently netting more than 150 pips. Today, we added a new CHF trade with 2 charts ahead of tomorrow's Swiss Q2 GDP. Trades & charts here.