FX Highlights

  • Two bombings at high-end western hotels in Jakarta Indonesia which left nine people dead sparked safe haven USD demand, GBP pressured by IMF warning on UK debt, CAD lower as Canadian CPI falls more than expected, AUD pressured by falling export prices, focus turns to this morning's release of US housing starts and building permits and earnings reports at Bank of America, Citi and GE
  • IMF warns that GBP may be at risk from uncertainty and UK banks may need more capital, BOE's Bean says UK recovery will be slow, GBP lower
  • Japan's leading indicator was revised to 76.9 from 77, Japan's Tamaki says dollar will remain the world's key reserve currency, JPY mixed
  • EU May trade balance rises to 1.9 bln compared to -3.8 bln last month, Germany's economics minister says the global economy is stabilizing, EUR lower
  • Australia's Q2 export prices fall 20.6%, import prices drop 6.4%, AUD lower
  • Canada's June CPI fell 0.3%, and core CPI flat, Canada's CPI is negative for the first time since 1994, BOC meet on July 21st , no policy change is expected from the BOC, CAD lower
  • July NAHB home builder confidence at a ten month high of 17 compared to 15 last month
  • NY Stern Business School professor Roubini says the worst for the economy has passed but the outlook for the US economy remains weak and more stimulus is needed
  • US equity markets set to open mixed, European equities 1% higher, Nikkei closed 51points higher

Upcoming Events

  • US- Friday, June housing starts will be released expected at 530k compared to 532k last month along with building permits expected at 520k compared to 518k last month