FX Highlights

  • The USD and JPY trade lower as US equities are set to open higher ahead of today's release of US Q3 GDP, economic sentiment improves in the EU and German unemployment unexpectedly fell, UK mortgage approvals rise to an 18 month high, GBP trades at a six-week high versus EUR, Norway's krone supported by 25bps rate hike from the Norges Bank Wednesday, commodity currencies supported by a modest rebound in crude prices and hawkish comments from Australia's finance minister
  • Focus turns to today's release of US jobless claims and Q3 GDP, Canada's raw material prices and Canada's GDP
  • Japan September industrial production rises 1.4%, September corporate service price index falls 0.2%, JPY lower
  • Australian finance minister says interest rates won't stay at current emergency levels, RBNZ holds rate policy steady at 2.5% and the policy statement was less hawkish than expected, AUD higher
  • EU October economic sentiment rises to 86.2 compared to 82.8 in September, October economic sentiment improves to -21 from -24 last month, German unemployment rate falls to 8.1%, EUR higher
  • UK mortgage loans rose to 56,215k from 52,970k last month, GDP higher
  • Asian Wall Street Journal reports that deflation in Japan threatens recovery
  • Russia cut interest rates 50 basis points and 9.5%
  • Cleveland Fed reports that the USD is 11% undervalued against currencies of developed and emerging economies, no major USD appreciation expected soon
  • Treasury Secretary Geithner expects USD to remain the reserve currency of choice
  • US equity markets set to open higher, European equities mixed, Nikkei closed 184 points lower

Upcoming Events

  • US - Thursday, jobless claims for week ending 10/24 will be released expected at 525k compared to 531k last week along with advance Q3 GDP expected at 3.2% compared to -0.7% last quarter
  • CAN - Thursday, September IPPI and RMPI will be released expected -0.2% and 0.7% respectively, GDP expected at 0.1%