FX Highlights

  • USD is trading mixed as commodity currencies turn down tracking lower gold prices and concern about China's economic outlook, China's Premier said China's rebound is unstable, unbalanced and not yet solid, AUD pressured by report of weaker than expected Australian employment data, GBP rallies supported by report of rising UK house prices and BOE decision to leave rate policy unchanged and maintain the current level of quantitative ease at £175 bln, CAD lower despite Wednesday's report a sharp rise in Canadian housing starts awaiting BOC policy decision, BOC is expected to leave monetary policy unchanged and may comment on CAD strength
  • Focus turns to today's release of US jobless claims and trade balance for the US and Canada
  • Japan's corporate goods prices for August were flat, export prices rose 1.1%, import prices rise 0.3% machinery orders fall 9.3%, JPY higher
  • Australia is August employment rate at 5.8%, jobs loss at -27.1k, AUD lower
  • UK August Halifax price index rises 0.8%, BOE elects the hold rate policy steady and maintain current level of quantitative ease, UK equity market rises, GBP higher
  • ECB's Weber says ECB accommodative policy will continue, ECB's Mersch says the economy is stabilizing but he sees volatility ahead, EUR mixed pressured in cross rate to GBP
  • Fed‘s Beige book for August said that economic activity stabilized or is improving in all 12 Fed districts but retail sales were flat, labor markets weak, pace of layoffs has slowed temporary hiring rising, loan demand weak downward pressures continue on home prices and manufacturing showed modest improvement
  • Fed's Evans says the Fed will interest rates raise rates after the unemployment rate peaks
  • US equity markets set to open lower, European equities mixed, Nikkei closed 201 points higher

Upcoming Events

  • US- Thursday, initial jobless claims for week ending 09/05 will be released at 560k compared to 570k last month along with July trade balance expected at -27.5 bln compared to -27.1 bln last month
  • CAN- Thursday, July trade balance will be released expected at 0.1 bln compared to -0.06 bln last month