FX Highlights

  • The USD is trading higher as the global equity market rally slows and investors try to assess risk, the BOJ leaves monetary policy unchanged and will end corporate bond purchases, EU inflation remains negative and unemployment rises, Fitch downgrades seven UK building societies, Swiss KOF rises more than expected, Australia's private sector credit falls
  • Focus turns to today's release of US personal income and consumption, Chicago PMI and Michigan sentiment and Canada's GDP
  • BOJ leaves rate policy unchanged, will end corporate bond and commercial paper purchases in December, Japan's core CPI falls 2.3% y/y, September unemployment falls to 5.3%, September household spending rises 0.1% housing starts fall 37% y/y, October manufacturing PMI falls to 54.3 from 54.5 in September, JPY higher
  • UK October GFK consumer confidence rises 3 points to -13, Fitch downgrades seven UK building societies, GBP lower
  • Australia's September private sector credit falls 0.2%, AUD lower
  • EU October CPI falls 0.1%, September unemployment rate rises to 9.7 from 9.6, EUR lower
  • Swiss October KOF rises to 1.45 from 85 last month, CHF lower
  • Treasury Secretary Geithner calls for an extension of the homebuyer tax credit which is scheduled to expire on December 1st and says the US economy in the early stages of recovery but risks remain
  • US equity markets set to open lower, European equities mixed, Nikkei closed 144 points higher

Upcoming Events

  • US - Friday, September personal income and consumption will be released expected at 0.1% and -0.5% respectively along with October Chicago PMI expected at 49.1 compared to 46.1 last month and final Michigan sentiment expected unchanged at 69.4
  • CAN - Friday, August GDP will be released expected at 0.1%