FX Highlights

  • The USD is trading lower as unemployment falls in Australia and AUD surges, gold trades at a fresh record high and US equities are set to open sharply higher supported by better than expected earnings outlook from Alcoa, the rally in US equities contributes to improving risk appetite, the Financial Times reports that President Obama is under fire over the declining USD, central banks in South Korea, Taiwan Philippines and Thailand were reported intervening to try to limit the USD decline, BOE and ECB hold rate policy unchanged
  • Focus turns to today's release of US jobless claims and wholesale sales and inventories, Canada's housing starts and the ECB press conference
  • Japan's current account surplus rises 10.4% y/y, analysts at Nomura said that Japan will not intervene at current levels but this could change, JPY higher
  • Australia's September employment rate falls 0.1% to 5.7%, 40.6k new jobs created, AUD at fresh 14 month high
  • German August industrial production rises 1.7%, ECB unchanged, EUR higher
  • BOE holds monetary policy unchanged and maintains the current level of asset purchases, scale of quantitative ease to be kept under review, GBP higher
  • US consumer credit declines by 12 bln, consumer credit is at its lowest level since July 2007
  • Proposed US healthcare bill to cost 829 bln over the next 10 years and the OMB says the bill would reduce the US budget deficit by more than $80 bln
  • U.S. Congress has yet to pass legislation to extend unemployment benefits, benefits for 400K unemployed ran out at the end of September
  • US equity markets set to open higher, European equities 1% higher, Nikkei closed 37 points higher

Upcoming Events

  • US - Thursday, initial jobless claims for week ending 10/03 will be released expected at 540k compared to 551k last week along with August wholesale sales and inventories expected at 0.7% and -1% respectively
  • CAN - Thursday, September Housing starts will be released expected at 148k compared to 150.4k last month