Good Morning,

- The greenback rose to a fresh six-year high against the Japanese of 107.04 yen and trade stable against the euro at 1.29 level.

- U.S. stock prices rebound last night, helped by Apple. Japan's Nikkei 0.76%, Hong Kong's Hang Seng -0.27% (07:00 GMT), Korea's Kospi -0.37%, Australia's ASX 200 -0.51% and China's Shanghai -0.28%.

- The euro rallied against its Swiss franc yesterday after the Swiss National Bank reinforced its willingness to take further steps to cap the franc at 1.20 per euro if necessary, including imposing negative interest rates.

- Barclays on EUR/USD: The bank now sees a more protracted and significant slide in the EUR and has revised accordingly its EUR forecasts substantially lower over a 12-month horizon. "While our recent forecasts for EUR depreciation have proven accurate, the deterioration in the euro area economic and inflation outlook and the ECB response to it lead us to expect more substantial depreciation," Barclays argues. "We expect this to be a multi-year trend, returning EURUSD to lows not reached in more than a decade. As a market consensus develops about this idea, we expect already negative hedging costs at a multi-year horizon to accelerate the EUR’s slide as long-term investors and corporates substantially adjust their hedge ratios," Barclays projects. In line with that, Barcalys revised today its forecasts for EURUSD to 1.27 in 1 month, 1.22 in 3 months, 1.17 in 6 months, and 1.10 in 12 months.

- Prospects that Scots could vote for independence, in a referendum next week, kept sterling under questions. It was last trade in Asia at $1.62 level, having slumped to a 10-month low of $1.6052 on Wednesday. A new opinion poll on Scottish independence has found the no vote back in the lead at 53% of voters, suggesting the sudden surge in backing for independence has subsided.

- Obama: US will use airstrikes to take out Islamic State fighters 'wherever they exist'.

- The U.S. 10-year yields hit 2.543 percent, it’s highest in more than a month.

- The Bank of Japan drove a short-term interest rate below zero, a dramatic step in its already unprecedented effort to stoke inflation and a likely sign it will continue its aggressive asset purchases. The BOJ bought three-month bills for more than their redemption value on Tuesday, traders said, essentially paying to lend money to the market.

- Australian employers added a record number of jobs in August, underscoring the central bank’s reluctance to cut interest rates further and sending the local currency higher. The number of people employed increased by 121,000. The jump in employment compares with the median estimate for a 15,000 increase in a Bloomberg survey. The jobless rate fell to 6.1 percent from a 12-year high of 6.4 percent.

- New Zealand’s Interest-rate rises are looming even though official rates were kept at 3.5 per cent today, the Reserve Bank says. In addition, the central bank is expecting the housing market to keep cooling down. The dollar remained too high and was expected to come down significantly, the bank said. In its latest Monetary Policy Statement this morning, the central bank said: "We expect some further policy tightening will be necessary to keep future average inflation near the target 2 per cent midpoint."

- China’s consumer inflation eased to a four-month low in August while factory-gate prices extended their decline to 30 months, adding room for government stimulus to support the economy amid a property slump. The consumer price index rose 2 percent from a year earlier.

- U.S. crude oil fell to a 16-month low and Brent to a 17-month low on rising supply and tepid demand as OPEC lowered projected demand for its crude and data showed U.S. refined product stocks jumped.

- Watch today: German CPI, US jobless, US 10-year yields.

Have a nice day!

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