FX Highlights

  • USD is opening lower as the OECD says the recession has ended and recovery may be faster than expected, China's wealth fund is rumored to be selling USD for gold and other investments, gold is trading at its highest level since June, crude prices rise, US and European equities higher contributing to improving risk appetite, US retailers Home Depot and Target post better than expected sales, FOMC says risks to US economy have eased considerably, Australia's trade deficit widens more then expected, ECB holds rates policy unchanged as expected, waiting for the ECB press conference, UK services PMI rises more than expected, Britain, France and Germany tell the G-20 that governments should stick to current stimulus plans
  • Focus turns to today's release US jobless claims and services PMI
  • Australia's July trade deficit widens to 1.5 bln, a reading of 850 mln was expected, exports fall 1% imports rise 4%, August new vehicle sales fell 6.9%, AUD higher
  • EU July retail sales fell 0.2%, August services PMI rises to 49.9 from 45.7 last month, EUR higher
  • MOF flows data for week ending August 29th show that foreigners were net buyers of Japanese stocks, DPJ official says strong JPY is good for Japan's economy, JPY lower on improving risk appetite
  • UK August services PMI rises to 54.1 compared to 53.2 last month, GBP higher
  • Fed's Plosser says economy in transition expects growth in the second half of the year, sees risk of higher inflation, exit strategy must be carefully set, interest rates may have to rise rapidly
  • Dow Jones reports that China is preparing to buy $50 bln IMF notes
  • Goldman Sach's analysts raises AUD forecast to 8700 in three months from the prior forecast of 8200 because of strong Australian Q2 GDP
  • FOMC minutes for August state the recession is ending but see uncertainty about the strength of the recovery and expressed concern about jobs
  • Treasury Secretary Geithner to outline principles to constrain excessive leverage by banks at this weekend's G-20 meeting and says the US seeks a globally coordinated exit strategy from stimulus policies, Geithner says it's too early to begin removing economic stimulus, G-20 meet in London this weekend
  • US equity markets set to open higher, European equities 1% higher, Nikkei closed 65 points lower

Upcoming Events

  • US- Thursday, jobless claims for week ending 8/29 will be released expected at 556k compared to 570k last month along with August services PMI expected at 48 compared to 46.4 last month
  • CAN- Thursday, no major Canadian economic data is scheduled for release today