FX Highlights

  • The USD is trading mixed to mostly lower as equity markets rise and the trade expects the Fed to keep interest rates low for an extended period, high yield currencies rally, GBP was pressured by a statement from BOE's Posen that suggests he may call for an increase in the size of the BOE's asset purchase program, EUR mixed supported by gains in cross trade versus GBP with upside limited by growing concern about EUR strength, trade to monitor today's EU ministers meeting for possible comments on EUR strength, AUD supported by upbeat comments from the RBA's Lowe and fresh RBA rate hike speculation
  • Focus turns to today's release of US NAHB index and Canada's net foreign investment flows
  • Japan's August tertiary index rises 0.3%, BOJ'S Shirakawa says the economy is starting to improve, corporate funding conditions are improving, he expects further recovery and CPI decline to slow, BOJ minutes state that the BOJ discussed the diminishing impact of BOJ's bond support plan, JPY mixed
  • According to the AFR the RBA will wait and see upcoming data before deciding next rate move, RBA's Lowe says it's appropriate to go back to more normal monetary policy, AUD higher
  • Financial Times carried a piece urging ECB to take action on EUR strength, BBK says the German economy improved in Q3, EUR higher
  • BOE's Posen says the BOE must continue quantitative ease, exit strategy based on recovery and inflation, CBI says the UK risks GBP crisis if public finances are not controlled, GBP lower downside limited by report of bigger than expected rise in UK house prices
  • Barron's carried a cover story this weekend which says it's time for the US to raise interest rates
  • US equity markets set to open higher, European equities 1% higher, Nikkei closed 21 points higher

Upcoming Events

  • US - Monday, October NAHB will be released expected at 20 compared to 19 last month
  • CAN - Monday, August net foreign investment will be released expected at 1 bln compared to 0.35 bln last month