USDJPY TECHS: Support Remains Intact

A somewhat similar Beige Book for August (link) to that from July, with the highlight probably a slight cooling in the price pressures at first glance. There was only marginally softer economic activity in terms of the number of Districts reporting slight to moderate growth (still a clear majority).

• Overall economic activity: “Economic activity increased modestly since early July. Ten of the twelve Federal Reserve Districts reported growth in the slight to moderate range; two Districts reported no change.”
  • That compares with this from the July Beige Book: “Economic activity increased at a slight to moderate pace in eleven of twelve Federal Reserve Districts in late May and June, while one District reported no change.
• Prices: “Prices increased moderately in eight Districts, with two Districts reporting modest increases, one slight increases, and one robust increases. Compared with the previous reporting period, the pace of price increases was the same in eight Districts, decreased in three, and increased in one.”
• Labor: “Employment rose very slightly overall, with three Districts showing modest gains in employment, four reporting slight gains, and five Districts experiencing no change. Eight Districts saw a change in their pace of growth from the previous report, but there was less overall dispersion among Districts.”

"*TRUMP: RENEWED CAMPAIGN ON IRAN WON'T TAKE TOO LONG" - BBG
"*TRUMP ON IRAN: WE'RE PREPARED TO DO ANOTHER ATTACK ANY TIME" Bbg

• Duration of campaign headline rather than readiness to attack - sees crude retreat briefly, Tsys bounced.
• (Algo) Knee jerk reaction has unwound already

• TRUMP: PREPARED TO DO ANOTHER ATTACK ON IRAN - [RTRS]
• TRUMP ON IRAN: IRAN WAS TRYING TO BUILD A ROCKET THAT DROPS MINES; WE TOOK IT OUT - [RTRS]
• TRUMP ON IRAN: IRAN WAS TRYING TO REBUILD RADAR AND MISSILE SYSTEMS - [RTRS]
• TRUMP ON IRAN: RENEWED CAMPAIGN AGAINST IRAN WON'T CONTINUE FOR TOO LONG - [RTRS]