A quick rundown of the themes in foreign exchange and other markets today
We hope you're having a great Labor day. If you're just checking in, there aren't any big stories that are making waves today but markets have been on the move.
1) Cable strength
The pound is easily the best performer today and cable is up 114 pips to 1.5284. There hasn't been any news or data behind the move. It's a matter of position squaring in a thinner market. The paid had declined for nine straight days before today's rebound.
2) Swiss franc weakness
The Swissy is the soft spot in the FX market today. The SNB published FX reserve and sight deposit data today. The 1.7% rise in reserves might have been misinterpreted as intervention but it's more likely because reserves are reported in francs but held mostly in euros and the value of EUR/CHF rose 2% in August. In any case, this pair has a mind of its own lately and the technicals are part of today's story.
3) Oil weakness
This could be reframed as China weakness because that's the driver. The Shanghai Composite fell 2.5% in the first day back after holidays on Thursday and Friday. That manifest itself as concern about global growth in the oil market. Brent is down $1.79, or 3.8%, to $47.71 today and it cut through an interesting support level.