FX Highlights

  • GBP rebounds supported by report of better than expected CBI retail sales, JPY trades lower as Japanese officials backpedaled on comments opposing intervention in Forex markets, USD edges higher as equity markets decline and the FDIC may ask banks to prepay insurance to help the FDIC bridge its funding gap, AUD supported by RBA rate hike speculation
  • Focus turns to today's release of Case Shiller Home Price Index and consumer confidence
  • UK September CBI retail sales rises to +3 from -16 last month, August mortgage lending rises to 1.009 bln from -0.203 bln in July, consumer credit declines for the second month in a row to -0.309 bln, final Q2 GDP at -0.6%, GBP higher
  • FX advisor to Japan's government Gyothen when asked about intervention said its vital to maintain stability and would not comment on Fuji's intervention comments, Fuji says Japan would never accept strong JPY, government will act if FX moves are abnormal, Fujii went on to say that Japan should support the USD reserve status, Japan's August core CPI falls 2.4%, JPY lower
  • RBA's Richards warns of the risk of house price bubble, says interest rates cannot stay low indefinitely, RBA watcher McCrann expects the RBA to hike rates in November or December, AUD higher
  • EU September economic sentiment rises to 82.8 from 80.8 last month, industry sentiment improves to -24 from -25 and consumer sentiment improves to -19 from -22, EUR lower
  • World Bank President Zoellick warns that there are viable alternatives emerging to the USD reserve currency status and that the EUR could be a respectable alternative to the USD
  • The Russian central bank cut its main interest rate to 10% from 10.5%, RUB lower
  • FDIC may require banks to pre pay 3 years of insurance to help the FDIC bridge its funding gap
  • BOC Governor Carney warns that the recovery was stimulus and when stimulus runs out it will be up to consumers and business spending to keep the recovery alive, Carney also repeated his warning that strong CAD would offset economic improvements and that resolution of global imbalances would require countries like China to make currencies adjustments, CAD mixed
  • US equity markets set to open lower, European equities 0.5% lower, Nikkei closed 90 points higher

Upcoming Events

  • US - Tuesday, July Case Shiller House Price Index will be released expected at -14.3 compared to -15.4 last month along with September consumer confidence expected at 56.5 compared to 54.1 last month
  • CAN - Tuesday, no major Canadian economic data is due for release today