FX Highlights

  • The USD is trading higher supported by a drop in risk appetite as equity markets slide and by a report that China may begin to withdraw stimulus, Japanese exports fall more than expected in September, UK retail sales flat, BOE's Tucker says quantitative ease may be expanded if needed, China's third-quarter GDP came in close to expectation, commodity currencies lower tracking weaker equity markets
  • Focus turns to today's release of US jobless claims and leading indicators
  • Japan's September trade surplus narrows to ¥520.6 bln, exports fall 30.7%, imports fall 36.9%, BOJ considering an exit from its bond support plan, JPY lower
  • China's GDP rises 8.9% in Q3, many analysts had expected a rise above 9%
  • EU current account deficit turns to 5 bln deficit from 9.3 bln surplus, ECBs Weber says the worst of the financial and economic crisis appears to have passed, EUR lower
  • UK September retail sales unchanged, rise 2.4% y/y, BOE Tucker says it's difficult to gauge the strength of UK recovery and hinted that quantitative ease may have expanded, GBP lower
  • Swiss September trade balance widens to 1818 mln from 1718 mln last month, CHF lower
  • Sweden's central bank elected to hold interest rates steady Thursday at 0.25%, Swedish krona trades lower
  • Fed ‘s Lacker expects the US economy to grow by 2.5 to 3% in 2010, inflation to remain in check, will take time to improve the unemployment situation
  • Fed's Beige book says most districts report stabilization or moderate recovery, economic gains generally outnumber declines, residential real estate and manufacturing show improvement, commercial real east the weakest sector, most districts see little or no increase in wage or price pressures, loan demand weak
  • Pimco's Clarida says a disorderly decline of the dollar cannot be ruled out
  • US equity markets set to open lower, European equities 0.5% lower, Nikkei closed 66 points lower

Upcoming Events

  • US - Thursday, initial jobless claims for the week of for week ending 10/17 will be released expected at 515k compared to 514k last week along with leading indicators for September expected at 0.8% compared to 0.6% last month
  • CAN - Thursday, no major Canadian data is scheduled for release today