FX Highlights

  • The USD edged higher as stocks weaken and an IMF official says that he is surprised by the resilience of the USD during the financial crisis, stocks were pressured by a statement from China's Premier Wen that the world faces an uneven recovery, Swiss investment sentiment falls more than expected, EUR lower despite positive industrial production data and improved outlook for EU Q3 GDP, AUD gives back gains sparked by better than expected Australian employment data tracking weaker equities and a decline in the price of crude and gold, there is increasing pressure on China to boost the Yuan
  • Focus turns to US jobless claims and Canada's New House Price Index
  • Japan's October corporate goods prices fall 0.7%, a senior MOF official says that Japan cannot consider an exit strategy now because of the weak domestic economy and poor corporate outlook, JPY mixed
  • Australia's unemployment rate at 5.8% jobs created rises by 24.5k, AUD lower despite better than expected employment report
  • EU September industrial production rose by 0.3%, German economic advisor forecasts 1.6% GDP for Germany in 2010, French finance minister says that Friday's EU GDP report may confirm that economic expansion has accelerated, EUR lower
  • Swiss November Zew investment sentiment falls to 56.4 from 65 last month, SNB's Roth says that Swiss exporters are not expressing much concern about FX rates, CHF lower
  • The Financial Times reports that China may allow Yuan appreciation, Asian currency rebalancing could take some of the upside pressure off the EUR
  • Treasury Secretary Geithner continues to try to talk up the dollar and says the Obama administration is committed to strong dollar will take action to reduce US deficits
  • US equity markets set to open lower, European equities lower, Nikkei closed 67 points lower

Upcoming Events

  • US - Thursday, initial jobless claims will be released for week ending 11/07 expected at -508k compared to -512k last month along with the Treasury budget for October expected at -150bln compared to -155.53bln last month
  • CAN - Thursday, September New House Price Index will be released expected at 0.2% compared to 0.1% last month