Hawkish Knot fails to prop up EUR -Another....>

FOREX: Hawkish Knot fails to prop up EUR

-Another strong session for the greenback looked under threat by comments from

ECB's Knot, who stated that that there is no need to resume QE program right

now, adding that there is no "value added" in the ECB launching a package of

measures. Knot sees market expectations for an ECB September decision as

"overdone". The unscheduled comments helped boost EUR/USD to hit session highs

of $1.1093, but the move was swiftly reversed as the market shrugged off an

opinion that's likely among the minority at the ECB. EUR/USD ended up testing

the $1.1050 level by the end of the London session.

-Much of the USD's strength came on the heels of a better-than-expected set of

US GDP figures. Headline growth was inline but personal consumption was well

ahead of expectations. This saw the USD index hit a five week high, coming just

0.5% shy of the two-year highs seen at the beginning of August.

-Japanese retail sales and industrial production, German retail sales, French,

Italian and Eurozone inflation data, Canadian GDP US personal spending and the

MNI Chicago PMI data ensure a busy end to the week.