FX Highlights

  • USD is trading mixed to lower with continued focus on uncertainty about USD reserve status, improvement in risk sentiment as equity markets consolidate Tuesday's gains and in reaction to the G-20 pledge to maintain stimulus policies until recovery is secure, investors are moving into riskier assets as risk appetite improves, Japan's leading index improved for the fourth month in row, UK consumer confidence at its highest level in 15 months and Moody's says UK debt rating safe, Australia's retail sales weaker than expected but consumer confidence rises sharply, ECB officials warn the crisis is not yet over, CAD continues to underperform
  • Focus turns to today's release of Canada's housing starts, no major US economic data is scheduled for today, the Fed's Beige book will be released later in the session
  • Former MOF official Sakakibara said that USD will remain the world's reserve currency for the next 20 years, Japan's July coincident indicator rises 1 to 89.6, leading economic indicators rose 2.1 to 83, JPY lower
  • UK August nationwide consumer confidence rises to 63 from 61 July, July trade deficit narrowed to 6.47 bln from 6.51 bln last month as exports rise, Daily Telegraph reports that UK recession appears over, Moody's says UK debt downgrade unlikely, GBP higher
  • Australia's July retail sales fall 1%, July housing finance falls 2%, Westpac consumer confidence rises to its highest level in two years up 5.2%, AUD higher
  • ECB President Trichet says the crisis is not yet over, former Fed Chairman Greenspan warns that the financial crisis may reoccur, German August CPI unchanged at 0.2%, EUR higher
  • Manpower survey says employers hiring plans for Q4 are at their lowest level in history
  • US consumer credit dropped by a record 21.6 bln, a 4 bln decline was expected, the drop in consumer borrowing signals a slow recovery
  • US mortgage applications rise to a three-month high
  • China's sovereign wealth fund may buy US real estate
  • US equity markets set to open lower, European equities 0.5% higher, Nikkei closed 81 points lower

Upcoming Events

  • US- Wednesday, no major economic reports are due for release today
  • CAN- Wednesday, August housing starts will be released expected at 139k compared to 132.1k last month