FX Highlights

  • The USD and JPY are trading lower as equity markets and commodity prices rally and the Feds Fisher says that interest rates will remain low because of weak US economy, gold trades at a new record high, GBP pressured by BOE Governor Kings statement that weaker GBP will help rebalance UK export outlook and he remains open to expanding asset purchases if needed, commodity currencies supported by improving risk appetite and mixed Chinese economic data
  • Japan's September core machinery orders rose 10.5%, JPY lower
  • China's industrial output rose to 19 month high in October, loan and investment growth slowed and imports and exports were weaker, Chinese officials suggest that they are ready to allow the Yuan to appreciate and consider major currencies not just the USD in guiding exchange rate policy
  • Australia's November Westpac consumer confidence falls 2.5%, AUD trades at new high for 2009
  • UK BOE inflation report says that inflation will remain below target in two years and risks are balanced, weaker GBP will help rebalance exports away from imports, BOE has open mind about whether more asset purchases will be needed, unemployment rate at 7.8%, claimant count rises by 12,900k, GBP lower
  • Feds Fisher says weak economy calls for low rates, he sees the prospect for weak recovery
  • US Treasury Secretary Geithner says he believes in strong USD and that the US will work to bring the budget deficit down, US economy in early stage of recovery
  • US equity markets set to open higher, European equities 1% higher, Nikkei closed 1 point higher

Upcoming Events

  • US - Wednesday, no major economic reports are due for release today, Veterans Day holiday
  • CAN - Wednesday , no major Canadian economic data is due for release today