FOREX IN REVIEW

As September arrives, ECB President Mario Draghi's plate just got fuller. Yields on Spanish 10-year notes took a beating Friday, soaring almost 4.00% to 6.857% yield. Bankia, one of the largest Spanish banks, was bailed out Friday as a mounting non-performing loan ratio impaired the capital position. Today, Central Bankers around Europe will be presented with the latest plan by the ECB which is expected to be announced to investors on the 6th. Bear in mind, the upcoming German Constitutional Court decision could throw a wrench into the process. Equities trekked higher on Friday's following Ben Bernanke's speech, with the Spanish IBEX adding 3.13% followed by a 2.16% gain in the Italian MIB. The Euro Stoxx 50 was also higher, ticking up 1.54% as the UK FTSE 100 leaked -0.14% lower. EURUSD is mostly unchanged at 1.2576.

Bad data out of Europe Friday was met with worsening data out of Asia in the overnight session. China's latest HSBC flash PMI figures ticked down from last month, indicating that the pace of slowdown is picking up. Factory orders shrank in August according to the official government data. Meanwhile, commodity producer Australia is feeling the bite from a Chinese contraction as consumers pull back with spending figures recorded the biggest fall in 2-years. Tomorrow, the Reserve Bank of Australia is expected to keep rates on hold but could see action to buoy the economy. AUDUSD has slid -0.58% since the open to 1.0261 as NZDUSD falls -0.37%. Major equity indices are red across the board with the Nikkei leading to the downside with losses of -0.38%. The Australian ASX and Hang Seng Index are marginally lower, declining -0.13% and -0.12% respectively.

U.S. markets closed higher Friday, as Ben Bernanke's speech assuaged concerns and showed the Fed Chairman was willing to engage in further quantitative easing in the future. Although no official announcement of a change in policy was made, this more accommodative stance helped markets rally globally. The Dow Jones added 0.69% as the Nasdaq rose 0.60%. The S&P 500 trailed slightly, gaining 0.51%. Energy commodities have pulled back from Friday's highs led by WTI crude oil falling -0.22% to $96.20 per barrel. Wheat and corn futures are also ticking to the downside, declining -1.50% and -1.08% respectively. Precious metals and copper are higher as gold makes a run at the $1700 handle and silver jumps 1.27%. U.S. equity markets are closed for today' session for the Labor Day holiday.

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