FX Highlights

  • USD is opening mixed to lower and JPY rises as investors are cautious and fear recent rise in stocks and commodities is ahead of the economic news, AUD outperforms supported by strong Australian Q2 GDP, EU producer prices decline at a record pace, UK construction PMI declines
  • Focus turns to today's release ADP employment, productivity unit, labor cost and factory orders
  • Australia's Q2 GDP rises 0.6%, a 0.2% rise was expected, Australia's Swan says the government stimulus will be withdrawn and interest rates will have to be adjusted at some point, unemployment to remain elevated, AUD higher
  • JPY trades at a seven week high supported by rising risk aversion, Japanese officials try to reassure the US about US and Japanese relations, DPJ party says they will not interfere with BOJ policy
  • EU GDP falls 0.1% in Q2, producer prices decline at a record annual rate of 8.5% in June, EUR higher
  • UK construction PMI comes in weaker than expected, GBP higher
  • CAD lower, pressured by report that Canada's Liberals said they will no longer support the minority government
  • Libor euro and sterling rates at record lows
  • Challenger says job cuts were down 14% lower than a year ago
  • International Financial Services says currency trading volume slumped by 25% form the same month last year from a record high, FX trading nearly doubled from April 2005 to April 2008
  • August auto sales up 1% above 14.1 mln for the first time since 2008, Ford sales rise 17% in August but Chrysler and GM sales lag as the cash for clunker program ends
  • Economists declare the recession has ended as ISM rises above 50, S&P says it may not be until Q4 before we see solid evidence of recovery
  • US equity markets set to open mixed, European equities 0.5% lower, Nikkei closed 250 points lower

Upcoming Events

  • US- Wednesday, ADP employment will be released expected at -250k compared to -371k last month along with Q2 final productivity and unit labor costs expected at -5.9% and -5.8% respectively and July factory orders expected at 1.8% compared to 0.4% last month,
  • CAN- Wednesday, no major Canadian economic data is scheduled for release today