Main points for today

•     Dollar continues to strengthen

–    Gains against almost all G10 and EM currencies

–    Rally in the absence of any US news shows strong underlying support for USD

•     JPY declines on hopes for pension fund reform

–    PM Abe to appoint a pro-reform ally to oversee Govt Pension Investment Fund

–    Change in capital flows as it adjusts its JPY 127tn assets should weaken JPY

•     SNB head Jordon reaffirms pledge to maintain EUR/CHF floor

•     RUB weakens on rising Ukraine tensions but HUF, PLN strengthen

–    Hungary and Poland have a lot of CHF debt; with EUR/CHF floor in place, as EUR weakens, CHF should weaken too, easing their burden

•     RBA keeps rates unchanged; no big change in statement

–    Adds comment that AUD “remains above most estimates of its fundamental value”

–    AUD likely to continue to weaken

•     Today: Eurozone: Eurozone PPI for July to show faster drop in prices than in June, adding to deflationary worries

–    UK:  construction PMI for August expected to decline a bit

–    US: ISM manufacturing PMI expected to decline a bit but remain near highest level this year; should be USD-supportive anyway