FX Highlights

  • USD is trading higher as German economic sentiment index rises less than expected, UK inflation rises at its slowest pace in four years, BOE may cut rate paid to hold reserves with the central bank, stronger than expected UK housing data fails to boost GBP, Swiss Q2 IP data falls more than expected and Australia's housing data comes in weaker than expected, RBA minutes hawkish but give no clue as to when rates may be raised
  • Focus turns to today's release of US retail sales, PPI, Empire State Manufacturing survey and business inventories and Canada's Q2 labor productivity
  • Japan's Former Finance Minister Yasano warns that strong again will impact exporter earnings, Fujji named new Finance Minister, Fujii says it's not right for to weaken the JPY to benefit exporters and the government should refrain from such action, JPY lower
  • Australia's Q2 dwelling unit starts fall 3.7%, RBA policy minutes for the September meeting state that interest rates are likely to rise if recovery is sustained
  • UK August rates house prices rise 10.7%, first positive reading in two years, on the CPI rises just 0.4% smallest rise since January 2005, BOE looking to reduce the remuneration rate on bank reserves, GBP lower
  • German September ZEW economic index rises to 57.7, a reading of 60 was expected, the report generates concern about the recovery EUR lower
  • Swiss Q2 IP data falls by 14.9%, at 11.1% decline was expected, CHF lower
  • President Obama says US job losses are bottoming out in the US economy looks to be growing again, Bank of America CEO says US recovery may be stronger than expected
  • US equity markets set to open mixed, European equities mixed, Nikkei closed 15.56 points higher

Upcoming Events

  • US- Tuesday, September Empire State Manufacturing survey expected at 14 compared to 12.08 last month August PPI expected to rise 0.8%, with core PPI expected at 0.1%, August retail sales expected to rise 2%, July business inventories expected to fall 0.9%
  • CAN- Tuesday, Q2 labor productivity will be released expect to rise 0.6% compared to 0.3% last month