FX Highlights

  • USD and JPY rebound as equity markets trade lower on profit-taking and the rise in risk appetite takes a breather, RBA drops easing bias and the AUD rallies to a new multi-month high, UK construction data improves, EU PPI falls to record low, crude prices dip below $71 a barrel
  • Focus turns to today's release of US personal income and consumption, pending home sales and US savings rate, the direction of equity markets and risk sentiment remain the main drivers for FX trade, investors continue to price the end of the recession and look to gauge the potential strength of economic recovery
  • Japan's July monetary base rises 6.1%, Japan's economic minister says it's not clear if deflation risk is back, Japan's finance minister says he's not worried about rising bond yields, Japan's retail trust funds see first net inflow in 2009, JPY higher
  • RBA holds rate policy steady at 3%, shifts policy bias to neutral, says downside risks have diminished, Australia's Q2 house price index rises 4.2%, June retail sales fall 1.4%, AUD lower
  • Swiss July CPI falls 1.2%, compared to 1% decline in June, CHF lower
  • EU June PPI falls 6.6%, compared to -5.9% in May, EUR lower
  • UK M4 money supply rises faster than expected in Q2 and July construction activity contracted at its slowest pace in 16 months, UK July construction PMI rose to 47, GBP trades at nine month high
  • Euro, sterling Libor rates at record lows
  • White House says Friday's jobless data report to show higher unemployment
  • US equity markets set to open lower, European equities 1% lower, Nikkei closed 22 points higher

Upcoming Events

  • US- Tuesday, June personal income and personal consumption will be released expected at -1% and 0.3% respectively along with June Pending Home Sales Index expected to rise to 91.2 from 90.7 last month
  • CAN- No major Canadian economic data is due for release today