FX Highlights

  • JPY trades higher supported by repatriation flows ahead of Japan's fiscal half-year end and in reaction to report that Japan's manufacturing PMI hit a three year high in September, JPY was also supported by comments from Japan's Finance Minister Fujii that the new Japanese government will seek to boost domestic demand and a press report that the BOJ may soon let its corporate bond purchase plan expire, USD trades lower as the IMF upgrades its 2010 global growth forecast, GBP supported by report of improving UK consumer confidence, CHF supported by strong improvement in September KOF indicator, EUR supported by report of the smaller ECB one year auction and an unexpected drop in German unemployment, AUD trades at new high for 2009 supported by report of strong retail sales
  • Focus turns today's release of US ADP employment, Chicago PMI and Canada's raw materials producer prices and GDP
  • Japan's August industrial production rises 1.8%, September manufacturing PMI rises to 54.5 from 53.6 in August, August housing starts fall 38.3% construction orders fall 25.2%, Fujii says there is no plan to discuss the JPY rise at the upcoming G-7 meeting, JPY higher
  • IMF raises 2010 growth forecast from 2.5% to 3.1%
  • Australia's August retail sales rise 1.9%, August building approvals fall 0.1%, private sector credit rises 0.1%, AUD at 13 month high versus USD
  • UK September GFK consumer confidence improves to a 19 month high at -16 from -25 last month, July service sector output unchanged and Q2 productivity rises 0.3%
  • Swiss September KOF indicator improves to 0.85 from -0.04 last month, the KOF report increases risk of SNB intervention, CHF higher
  • EU September CPI falls 0.3%, German September unemployment improves to 8.2% from 8.3% last month, ECB will lend less than forecast in its twelve-month auction, EUR higher with gains limited by selling in cross trade to JPY and GBP
  • US equity markets set to open higher, European equities 0.5% higher, Nikkei closed 33 points higher

Upcoming Events

  • US - Wednesday, September ADP employment report will be released expected at -212k compared to
    -298k last month along with September Chicago PMI expected at 51.2 compared to 50 last month
  • CAN - Wednesday, August IPPI and RMPI will be released expected at 0.4% and 2.7% respectively along with July GDP expected to rise by 0.5% compared to 0.1% last week