FX Highlights

  • The USD and JPY are trading higher supported by declining equity markets sparked by concern that the global economy may slow as central bank began to withdraw economic stimulus measures, Bank of Ireland shares fall 15% sending European equities sharply lower, commodity currencies pressured by equity market weakness, AUD erases gains that were inspired by report of higher than expected Australian CPI, the dominant short-term driver for FX trade is paring back of risk which is generating demand for USD and JPY
  • Focus turns to today's release of US durable goods, September new home sales and EIA petroleum statistics
  • Japan's September retail sales rise 0.9%, Japan's Finance Minister Fujii concerned about rising Japanese bond yields, JPY higher
  • Australia's Q3 CPI rises 1% q/q and 1.3% y/y, AUD lower
  • EU September leading index up 1.2%, German September import prices fall 0.9%, EUR lower
  • FTSE drops 1.3% GBP lower
  • BOC Governor Carney says strong CAD has positive and negative effects, BOC expects the USD to remain the worlds reserve currency, intervention not effective unless backed up by policy, he is encouraged by improvement in housing and employment, CAD lower
  • Shiller says recent gains in house prices may not last, Senator Dodd says the tax credit will be extended to all home buyers
  • Mortgage applications fell 12.3% last week
  • NYU economist Roubini says USD carry trade fueling huge asset bubble
  • Ecuador president supports pricing of crude oil in EUR or a basket of currencies
  • US equity markets set to open lower, European equities 1.8% lower higher, Nikkei closed 137 points lower

Upcoming Events

  • US - Wednesday, September durable goods will be released expected 1.3% compared to -2.6% last month along with September new home sales expected at 444k compared to 429k last month
  • CAN - Wednesday, no major Canadian economic data is due for release today