FX Highlights

  • USD is trading mixed to firm with GBP sharply lower pressured by report that the BOE unexpectedly extended quantitative ease, the JPY is also trading sharply lower pressured by report that Japan may be facing three years of deflation, the ECB holds rates steady at 1% and will take a wait-and-see approach to future monetary policy decisions, Swiss consumer confidence falls to 16 year low, AUD trades higher, Australia's unemployment rate beat expectations reported steady in July, focus turns to today's release of US jobless claims and Canada's building permits
  • Japan's June leading indicators rise 2.9 points, coincidence indicator up 0.7 points, Reuters reports that the BOJ may forecast three years of deflation, JPY lower
  • Australia's July unemployment rose 32.2k, unemployment rate unchanged at 5.8%, a rise to 6% was expected, AUD higher supported by better than expected employment
  • Dow Jones reports that the PBOC may fine-tune policies as needed, i.e. cap lending if necessary, Asian equity markets decline in reaction to the PBOC report
  • Details of US/UBS settlement are due Friday, the settlement may generate concern about Swiss bank secrecy laws, Swiss Q3 consumer confidence falls to 16 year low at -42, a reading of -44 was expected, CHF lower
  • UK RICS house prices rise 1 to 2%, BOE extends asset purchase program by £50 bln and holds rate policy steady, GBP lower
  • German June industrial orders rise 4.5%, a 0.8% rise was expected, EUR lower
  • US equity markets set to open higher, European equities 1% higher, Nikkei closed 135 points higher

Upcoming Events

  • US- Thursday, jobless claims for week ending 08/01 will be released expected at 580k compared to 584k last week
  • CAN- Thursday, June building permits will be released expected -4.2% compared to 14.8% last month