FX Highlights

  • The USD is trading higher supported by deleveraging, investors are reducing risk exposure as equity and commodity markets trade lower, a statement from ECB President Trichet that it is too early to declare the financial crisis over, concern about rising debt levels in the UK and weaker than expected earnings at Dell appear to have sparked the latest wave of selling in global equity markets, the high-yield currencies were pressured by risk aversion and funds locking in profits ahead of year end, CAD traded lower in reaction to BOC statement that Canadian growth was softer in Q3
  • No major US or Canadian economic data is scheduled for release today
  • The BOJ elected to hold rate policy unchanged and upgraded its economic assessment, Japanese government says that the Japanese economy is back in deflation, JPY higher
  • ECB President Trichet says that the ECB will unwind unconventional policy measures gradually, German October producer prices were flat, EUR lower
  • UK Confederation of British Industries warn on UK public debt and called on the government to balance the budget by 2016, GBP lower
  • Feds Plosser says now is not the time for the Fed to begin to hike rates, sees no near-term inflation pressures, higher crude prices could derail the economic recovery
  • China's Zhou says the Chinese government is passive on USD value, People's Daily reports that Yuan appreciation would damage the global recovery, US call for China to allow Yuan revaluation has had limited impact
  • MBA says mortgage delinquencies rose to a new record high 14.41% in Q3 2009 as rising job losses force more to fall behind in payments
  • CBO estimates that more than half the expected cost of the next decades projected US 9trln debt will be interest on the debt (4.8trln)
  • Is commercial real estate the next shoe to drop? Forbes reports that banks are avoiding looses on commercial real estate by refusing to asses property values and commercial loan defaults are rising
  • Moody's put four German financial institutions on its downgrade list
  • US equity markets set to open lower, European equities 1% lower, Nikkei closed 52 points lower

Upcoming Events

  • US - Friday, no major US economic data is due for release today
  • CAN - Friday, no major Canadian economic data is due for release today