European Open: indecisive CNY data

Chinese GDP and retail sales beat, while industrial production missed. So dull performance in asian equities overnight. Despite being “mixed” vs. expectations, China did post the weakest quarterly economic growth since the global financial crisis, raising pressure on policymakers to cut interest rates further and roll out other support measures to avert a sharper slowdown. So I will not be looking to position early into the European session. I would like to see a more evident reaction as participants digest the data and make up their mind.
On the bright side, NZD September  PSI printed 59.3, highest since November 2007. So Nzd vs. Usd, Jpy and Eur remains at the top of my watchlist for the week.
Nobody really cares, but today we have the Canadian Federal Election. Polls suggest the base case is that the Liberals will fare well enough to at least form a minority government, but with support for the Liberals skewed towards younger voters. Of course,if the convervative party gains traction, that could be negative for Cad. Otherwise, hardly any impact expected.
Japanese Finance Minister Aso noted in an interview Friday that the BoJ was unlikely to expand easing for the time being. Investors may take this as a signal that the Japanese government does not favor a move from the BoJ as of yet.
No immediate action is called for this morning – so please refer to yesterday’s Game Plan for the charts.

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