PHILIPPINES: Romualdez Resigns As House Speaker, Dy Takes Over

Swiss industrial output declined in Q2, printing -2.46% Q/Q, the weakest consecutive print since Q1 2023 but that's coming from a very strong 3.63% in Q1.

• The print confirms the expected slowdown in Swiss manufacturing after the statistics office commented on last week's Q2 flash GDP (0.1% Q/Q) as "the negative performance in industry has been counterbalanced by gains in the services sector".
• The SNB is likely to remain focused on inflation developments in their near-term monetary policy decisions.
• Across sectors, pharmaceuticals stood out at -10.8% Q/Q but that comes after a record 18.2% in Q1 which was helped by US tariff front-loading. On an index level, encouragingly, the sector did see its second best quarter on record in Q2.
• Current tariff levels of 39% levied by the US on Swiss imports should weigh on industrial production in the country mid-term.
• SNB's Martin speaks in Zurich Thursday. Swiss Q2 labour market data is scheduled for tomorrow.

• EUR/USD: Aug19 $1.1620-25(E2.3bln), $1.1700(E1.3bln); Aug20 $1.1660-75(E1.2bln); Aug21 $1.1600(E1.3bln), $1.1700(E1.4bln), $1.1750(E1.9bln), $1.1800(E2.9bln)
• USD/JPY: Aug20 Y148.00-10($1.2bln); Aug21 Y145.95-00($1.2bln), Y146.70-80($1.7bln)
• AUD/USD: Aug21 $0.659-00(A$1.8bln)

 Westpac continue to look for upside in AUD/USD & downside in AUD/JPY multi-month.

• They write “AUD/USD remains very well anchored within short term ranges (0.6485-0.6565) and it probably stays that way for now. Core AUD/USD longs still make sense though. The price action may be dull and uninspired, but it doesn’t support abandoning our core view. The macro backdrop remains decidedly USD negative. We still look for another incremental new high, around 0.6650 on a 1-3 month horizon, but given AUD’s unexceptional progress, it more likely happens on the latter side”.
• For AUD/JPY Westpac suggest that “pathways to a more sustained bearish reset continue to build. Trade uncertainty has subsided in Japan with a provisional tariff deal, Q2 GDP was notably stronger than expected and the Q1 contraction was revised away. We continue to target 94.00 on a 1-3 month horizon and do not see the cross sustainably trading above 97.00”.