• Just a week to go until the next US presidential debate
• US futures dribble lower on the session
• Gold stays poised for a firmer breakout in big week for the dollar
• European equities open a little higher to start the day
• SNB has just about the right excuse to do a little bit more later this month
• Switzerland Q2 GDP +0.7% vs +0.5% q/q expected
• What are the main events for today?
• Switzerland August CPI +1.1% vs +1.2% y/y expected
• Eurostoxx futures -0.1% in early European trading
• FX option expiries for 3 September 10am New York cut
• Swiss data in focus in the session ahead
• China to launch anti-dumping investigation into Canadian chemical products

Markets:

• USD leads, AUD lags on the day
• European equities lower;
  S&P 500 futures down 0.50%
• US 10-year yields flat at
  3.91%
• Gold flat at $2,500
• WTI
  crude down 1.88% to $72.17
• Bitcoin
  down 0.17% to $50,041

The
European session has been dominated by defensive positioning into the US ISM
Manufacturing PMI release. As a reminder, the last month the ISM Manufacturing
PMI triggered a selloff in risk assets as we got the growth scare.

The main
culprit might have been the employment sub-index dropping to a 4 year low, so
that will be something to keep an eye on today ahead of the NFP report on Friday.

Early in
the morning, we got the Swiss CPI report which came out a touch softer,
although the Core measure remained unchanged, and diminished the probabilities
for a 50 bps cut at the upcoming SNB meeting.

This article was written by Giuseppe Dellamotta at www.forexlive.com.