FX Highlights

  • The USD and JPY trade higher as equities extend Thursdays slide, and Japan's finance minister says that the strength of the JPY will not be discussed at this weekend's G-7 meeting in Istanbul, the drop in global equities fuels risk aversion and safe haven demand for the USD, there is concern that the global recovery will be weak, Treasury Secretary Geithner says strong USD is important to the US, UK services PMI declines and house prices rise, EU producer prices rise in August, the rise in EU producer prices supports the EUR, Australia's inflation at a seven-year low, commodity currencies pressured by concern about the strength of the global recovery
  • Focus turns to today's release of US unemployment and factory orders, G-7 officials meet in Istanbul, the French finance minister says that the USD will be discussed by the G7
  • Japan's August unemployment drops to 5.5% from 5.7% last month, household spending rises 1.9%, Finance Minister Fujii says the G7 will not discuss JPY strength and FX should reflect fundamentals, JPY higher
  • Australia's September inflation index unchanged, AUD lower
  • EUR August producer prices rise 0.4%, IMF says Europe may recover more slowly than other nations, EUR higher
  • UK September construction PMI falls to 46.7 from 47.7 last month, nationwide house prices rose by 0.9% last month, GBP lower
  • US auto sales declined in September with Ford sales - 5.1%, Chrysler -42% and GM -45%
  • Delinquency rates hit a record high on home equity loans, home equity lines of credit and bank cards in Q2 2009 according to the American Bankers Association
  • Nobel laureate Stiglitz says that the Fed should keep interest rates low because of risk of slow recovery and threat of deflation
  • IMF says sustained stimulus is needed to save jobs
  • August semiconductor sales rise 5%
  • US equity markets set to open lower, European equities 1% lower, Nikkei closed 246 points lower

Upcoming Events

  • US - Friday, September unemployment will be released expected at 9.8% compared to 9.7% last month with non farm payrolls expected at -180k compared to -216k last moth, along with August factory orders expected at 0.7% compared to-1.3% last month
  • CAN - Friday, no major economic data is due for release today