FX Highlights

  • The USD trades lower as equity markets surge, the Independent newspaper reports that Arab states have discussed ending use of USD for pricing of crude oil, and the RBA hikes interest rates, Russian officials deny the report on USD pricing of crude and said they have not discussed changing USD role in pricing oil, Feds Dudley says Fed funds rate likely to remain exceptionally low for extended period, UK house prices rise, GBP lower pressured by report of weaker than expected UK industrial production and manufacturing data, Swiss CPI falls more than expected, RBA hikes rates 25 basis points to 3.25%, Gold rises to an 18 month high, commodity currencies surge
  • Focus turns to today's release of Canada's building permits and Ivey PMI
  • The Independent newspaper carried an article titled the Demise of the Dollar, the report says that China, Russia, France and Japan are discussing replacing the USD with a new basket of currencies to price oil, Arab state officials say they are not in talks on replacing the USD but the USD remains on the defensive
  • Japan's finance minister says G-7 discussed weak USD, and he is against competitive currency devaluations, Reuters reports that Japanese ministers are pressuring the BOJ to avoid ending its emergency funding program, JPY higher
  • Australia's August trade deficit widens to 1.524 bln, exports fall 2% imports while 3%, September new vehicle sales rise 6.6%, RBA hikes rates 25bps to 3.25%, AUD higher
  • UK August manufacturing output falls 1.9% and industrial output falls 2.5%, September Halifax house price index rises 1.6%, GBP lower
  • Swiss September CPI flat and falls 0.9% y/y, CHF higher
  • Dallas Fed Fisher says double-dip recession unlikely, but will have to remove accommodation in a timely manner
  • Fed's Warsh says the Fed may have to be aggressive in reversing policy actions, WSJ
  • President Obama considering tax cuts and new spending programs to try to stem job losses, new stimulus plan unlikely
  • US equity markets set to open higher, European equities 2% higher, Nikkei closed 17 points higher

Upcoming Events

  • US - Tuesday, no major us data is due for release today
  • CAN -Tuesday, August building permits will be released expected at 8% compared -11.4% last month along with September Ivey PMI expected at 56.1 compared to 55.7 last month