FX Highlights

  • USD is trading higher as equity markets decline with the Shanghai Index down 3% and US equities set to open lower, analysts warn of possible setback in US equity markets after the 46% rise from the March lows, there is speculation that the Fed may signal an end to its stimulus programs at Tuesday's FOMC meeting, commodity currencies pressured by report that the IMF plans to sell 12.5% of their gold holdings and in reaction to weaker crude prices, oil prices pressured by concern about weaker demand from China, markets closed in Japan for holiday
  • Focus turns to today's release of US leading economic indicators and Canada's net foreign investment flows and Tuesday's FOMC, Barron's reports that they expect no change in Fed policy or language at Tuesday's FOMC meeting, G-20 meeting set for September 24th and 25th focus on proposed regulation and possible sweeping economic changes
  • JPY trades sharply lower with pressure attributed to technical selling on break of 91.65 and profit-taking ahead of Tuesday's FOMC meeting
  • Australia's new motor vehicle sales for August rise 0.3%, AUD lower
  • UK Rightmove house prices rise 0.6%, BOE says GBP's long-run sustainable exchange rate may have fallen due to an increased focus on Britain's economic imbalances and rise in UK government debt, EUR/GBP at five month high
  • IMF plans to sell 12.5% of their gold holdings, gold dips below $1000 per ounce
  • CFTC commitment of traders for the IMM last week showed that speculators raised short USD positions to the highest level since March of 2008
  • Bloomberg reports that international investors continued to increase purchase of US treasuries even in the face of weakening USD anticipating US inflation to remain subdued
  • Money market funds saw their second biggest weekly outflow for the year last week, bond funds saw the most inflows, according to Marketwatch bond market timing newsletters are the most bullish bonds in 8 ½ years
  • Canada's Finance Minister Flaherty warns that Canada's recovery remains fragile and unemployment is likely to continue to rise, Canada's minority government survived a no confidence vote Friday, CAD lower
  • US equity markets set to open lower, European equities 1% higher, Nikkei closed

Upcoming Events

  • US - Monday, August leading economic indicators will be released expected at 0.7% compared to 06% last month
  • CAN - Monday, July net foreign investments will be released expected at 8.07 bln compared to 10.51 bln last month