FX Highlights

  • USD is trading higher and the JPY trades at an eight month high versus the USD as the trade reacts to weaker Asian equity markets and confusion over Japan's JPY intervention policy, EUR rallied after the Merkel election victory in Germany EUR gains were limited by selling in the EUR/JPY cross, UK house prices rise the most in two years, BOE may cut its remuneration rate, commodity currencies trade lower tracking weaker Asian equities and lower crude prices
  • No major US or Canadian economic data scheduled for release today
  • Japan's Finance Minister Fujii says he opposes intervention to boost the USD and Japanese press reports that the Japanese government will longer pursue week JPY policy, Fuji backpedals and says his intervention comment was made in a general sense, Japan's PM says JPY rise hurting small firms, JPY higher
  • RBA Governor Stevens says inflation target to be guide for future rate adjustments, unclear whether interest rates will rise before job losses peak, AUD lower
  • BOE's Dale says UK employment could fall further, UK press reports that Governor King's comments on weak GDP were misinterpreted, King suggests that BOE may reduce his remuneration rate it pays on commercial bank deposits, GBP lower
  • ECB President Trichet says 2009 growth to be very negative, 2010 could be slightly positive, Merkel election victory sparks EUR/GBP rally above 9300 but the rally does not hold, EU August leading index rises 1.8%, EUR lower
  • Economic Cycle Research Institute says that US economic recovery is far from fragile, its leading index rose to a 60 week high of 127.8, this was the highest reading for the index since July 25th 2008, the yearly growth rate rose to a record high, the rise reflects improved housing
  • US equity markets set to open higher, European equities 0.5% higher, Nikkei closed 256 points lower

Upcoming Events

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