FX Highlights

  • USD is trading at its lowest level since September 2008 as the UN calls for replacement of the USD with a new global currency, crude prices surge, equities rally, and gold trades above 1,000 an ounce, Australia's business confidence rises to a six year high, and UK manufacturing output rises more than expected, commodity currencies supported by the surge in price of gold, improving business confidence from Australia and rising risk appetite as Asian equity markets trade to the years high and emerging equity markets trade above pre-Lehman highs
  • Focus turns to today's release US consumer credit and Canada's building permits
  • Australia's August NAB business confidence rose to its highest level in six years up 8 points to 18, AUD trades near one year high
  • Japan's August service sector sentiment fell to 41.7 from 42.4 in July, August money supply rises 0.3%, bank lending falls 0.1% current account widens to 1.27 trln JPY, Japanese government sees economy improving but warns that rising unemployment clouds economic outlook, UK Times reports that DPJ policies could lead to fiscal collapse in Japan, JPY higher
  • UK August BRC retail sales fall 0.1%, UK manufacturing output for July rises 0.9% and July industrial output rises 0.5%, UK equities rise to 11 month high, GBP higher
  • German July industrial output falls 0.9%, German economic minister says industry output is expected to rise in Q3, EUR higher
  • Swiss unemployment rate rose to a six-year high at 4%, CHF higher
  • Economist Roubini says USD will weaken and is at risk of a crash if deficits are not controlled and debt reduced, he does not see the risk of USD crash in the near term but expects the USD will weaken over time on a trade weighted basis
  • OPEC meet Wednesday, no production change is expected
  • US equity markets set to open higher, European equities 0.5% higher, Nikkei closed 73 points higher

Upcoming Events

  • US- Tuesday, July consumer credit will be released expected at -4.5 bln compared to -10.3 bln last month
  • CAN- Tuesday, July building permits expected at 1.5% compared to 1% last month