The euro trade flat at 1.2950 level

Good Morning,

- The euro trade flat at 1.2950 level, as all eyes on FED at its Sept. 16-17 policy meeting…

- Asian stocks skidded to five-week lows on Monday, after a batch of weak data out of China raised the concerns of a sharp slowdown.

- The U.S. Federal Reserve may give clearer hints on when it will hike the cost of borrowing in the United States in the coming week, as struggling Europe braces for a tight vote in Scotland on whether to leave the United Kingdom. As the U.S. economy picks up pace, its central bank is inching closer to raising interest rates, a move that will send ripples across the globe.

- Credit Suisse on EUR/USD: The trend stays lower to our 1.2787/55 target. EURUSD continues to hold sideways in a tight range. However, minimal resistance at 1.2989 is still as yet untouched, leaving the risks still directly lower to our core target zone of 1.2787/55 – the 61.8% retracement of the entire 2012/14 bull trend and July 2013 low. We look for this to then ideally hold at first, for a retracement to the dramatic sell-off of the past three months. Bigger picture though, we will view any strength as corrective, and look for an eventual decline towards 1.2200, potentially even the 1.2042 low of 2012. Near-term resistance moves to 1.2963, but with a break above 1.2989 needed to confirm a correction higher is underway for 1.3070. CS booked profit on its last EUR/USD short at 1.3025 and now runs another short from 1.2950 targeting 1.2790.

- Reuters polling shows that economists expect banks to take up 275 billion euros of the 400 billion the ECB will offer over time and that they will buy around 400 billion euros of asset-backed securities and covered bonds over the next two years under a separate scheme.

- This week-end has been the start of the final countdown to a referendum that one way or another will be a watershed moment for the future of the UK, and the latest polls confirm that it’s going down to the wire. The results of three polls were released yesterday and went as follows: Survation - No 53.5% ahead Yes on 46.5%. A word of caution though here as it was commissioned by the Better Together No campaign. Opinium/Observer poll showed a narrow gap in favour of No. Excluding undecided voters, the poll found 53 % of those questioned plan to vote No while 47 % intend to vote Yes.

- China's factory output grew at the weakest pace in nearly six years in August, while growth in other key sectors also cooled.

- China's fiscal spending expenditure growth eased to 6.2 percent in August from a year earlier, data from the Ministry of Finance showed, reflecting the government's efforts to brake spending after a surge in previous months. Spending growth decelerated after a rise of 9.6 percent in July and gains of 26.1 percent and 24.6 percent in June and May respectively.

- Australian new vehicle sales fell in August for a second straight month with demand for sports utilities cooling slightly. Monday's data for the Australian Bureau of Statistics showed 91,391 new vehicles were sold in August, seasonally adjusted, down 1.8 percent from July's 93,051. The July result was revised to show a decline of 1.5 percent, from the original 1.3 percent fall.

- The Russian Rouble hit historic lows against the dollar on Monday, falling to 38 Roubles per dollar, as investors were concerned about Moscow's response to a new wave of Western sanctions over the Ukraine crisis.

Have a nice Week !