Euro rebound and stays on hold above at 1.29 level

Good Morning,

- The Euro rebound and stays on hold above at 1.29 level, as the market trade in a profit-taking mode…

- Asian shares tumbled on Wednesday as markets wagered the Federal Reserve would raise interest rates earlier than expected. Japan's Nikkei 0.25%, Hong Kong's Hang Seng -1.76% (07:01 GMT), Korea's Kospi -0.82%, Australia's ASX 200 -0.60% and China's Shanghai -0.35%.

- France: Increase in payroll employment in Q2 2014 by 0.1% q-o-q (+8,300 jobs), after -0.1% (-20,100) in the previous quarter.

- The dollar remained on demand after economists at the San Francisco Fed shocked markets by publishing a paper saying investors expects a slower rate hikes than the U.S. policymakers themselves expect. The research paper ramped up expectations that the Fed will signal an earlier-than-expected increase in rates at its policy-setting meeting on Sept. 16-17, possibly by omitting mention of its commitment to keep rates low "for a considerable time".

- The dollar's index rose as high as 84.519 on Tuesday, not far from the July 2013 peak of 84.753.

- U.S. bond yields also climbed as investors reassessed the Fed's rates outlook, with the 10-year yield hitting a five-week high of 2.509 percent. It was at 2.493 percent in early Asian trade.

- Goldman Sachs on EUR/USD: In a note to clients, GS tackles these questions, building and improving on its earlier statistical work. "We show that speculative short positioning historically has been a momentum indicator for parts of G10 FX – and especially for the EUR. Stretched speculative short positioning is, on balance, associated with future currency weakness," GS finds out. "We show that, based on positioning data alone and using our preferred metric, the probability of further EUR/$ downside is around 60%-70% over a three-month horizon," GS adds. "Our result underscores the view that the move lower in EUR/$ appears to be the start of a downward trend," GS concludes.

- British Prime Minister David Cameron implored Scots on Wednesday to shun independence to keep the United Kingdom "family" intact as he scrambled to stem a steep rise in secessionist support ahead of the Sept. 18 vote. In a sign of panic within the British ruling elite, Cameron and opposition leader Ed Miliband scrapped their weekly question-and-answer session to visit Scotland on Wednesday to ask Scots not to ditch their 307-year union with England.

- Bank of Japan Deputy Governor Kikuo Iwata reiterated policymakers' conviction that the economy can recover from a deep slump, saying that households and companies will boost spending as the pain from an April sales tax hike eases. Iwata acknowledged that weak exports and the rising burden on households from the tax hike were among risks to the outlook, but said a pick-up in global demand and wages will keep the world's third-largest economy on track for a moderate recovery.

- The Australian dollar hit a 5 1/2-month low of $0.9148.

- Commodities declined to the lowest in almost eight months as the dollar advanced on speculation that the FED will increase interest rates next year, curbing demand for raw materials.

- Watch today: Industrial production in France and Spain, US mortgage applications

Have a nice day!