FX Highlights

  • The USD is trading at a 14 month low as commodity currencies rally supported by a rise in the price of gold to another new record high and higher crude prices, USD was also pressured by diversification speculation as the Russian finance minister says the trend of diversification of reserves is likely to continue, China and Russia would like to expand the use of Rouble and Yuan in bilateral trade, GBP traded mixed initially supported by report of better than expected UK housing and retail sales data, GBP gains limited by weaker than expected UK inflation, EUR gains despite report of weaker than expected German business sentiment, geopolitical tensions related to additional Korean missile launches has limited impact and the USD gives back early safe haven gains
  • Focus turns t today's release of US Treasury budget, earnings at Johnson and Johnson and Canada's New House Price Index
  • Japan's September money supply rises 2.2%, JPY higher
  • UK September RICS house price balance rises to 22, highest in two years, September BRC retail sales rise 2.8% y/y, BCC says the UK economy on the verge of recovery, September CPI rises 1.1%, lowest in five months, GBP higher trading off highs after the release of weaker than expected UK inflation
  • Australia's September NAB business conditions improved to +3, AUD higher
  • German October economic sentiment falls to 56 from 57.7 last month, EUR higher
  • Swiss producer and import prices post a modest rise of 0.2% in September, a flat reading was expected, Swiss annual inflation rate falls 4.9% CHF higher
  • Russia's finance minister says diversification of global reserves set to last but sharp changes unlikely
  • Fed Governor Bullard says medium-term inflation risks may be higher
  • US equity markets set to open mixed, European equities a fraction lower, Nikkei closed 60 higher

Upcoming Events

  • US - Tuesday, September Treasury budget expected at 62.5 bln compared to 45.7 bln last month
  • CAN -Tuesday, August New Housing Price Index expected to rise 2%