FX Highlights

  • The USD is trading lower as manufacturing PMI's rise in Europe and Asia, GBP pressured by weak UK bank shares and report that the UK government may split up UK banks, GBP downside limited by report of above expectation UK manufacturing PMI, EUR supported by report that EU manufacturing PMI rises to an 18 month high, manufacturing PMI rises in China, the rise in manufacturing PMI's points to improving global economic outlook and sparked a rebound of risk appetite, AUD supported by RBA rate hike speculation, upgrade of Australia's economic and fiscal outlook and report of rising house prices
  • Focus turns to today's release of US construction spending, ISM and pending home sales
  • Japan's PM says JGB issuance must be below ¥44 trln, JPY higher
  • Australia's government raises economic and fiscal outlooks, Q3 house price index rises 4.2%, Westpac says RBI to raise rates 50bps Tuesday, AUD higher
  • China's October manufacturing PMI rises to 55.2 from 54.3 in September
  • EU October manufacturing PMI rises to an 18 month high at 50.7 from 49.3 last month, EUR higher
  • UK to break up a number of banks including RBS, UK CIPS manufacturing PMI rises to 53.7 from 49.9, GBP mixed
  • Swiss October PMI dips to 54 and 54.3 last month, CHF higher
  • CIT files for Chapter 11 bankruptcy
  • G-20 source says FX will not be a major issue at the next meeting
  • US Consumer spending fell 0.6% in September as the cash for clunkers program expired
  • US equity markets set to open higher, European equities mixed, Nikkei closed 232 points lower

Upcoming Events

  • US - Monday, November construction spending will be released expected at -0.3% compared to 0.8% last month along with October ISM expected at 53 compared to 52.6 last month and September Pending Home sales Index expected at 105.7 compared to 103.8 last month
  • CAN - Monday, no major Canadian economic data is due for release today