FX Highlights

  • The USD is trading lower pressured by optimism about the global recovery as EU GDP report suggests that the EU recession is over, JPY supported by large upward revision in September industrial production and Yuan revaluation rumors, EU Q3 GDP rises less than expected, Australia's trade minister says strong AUD not limiting exports
  • Focus turns to US trade balance, import prices, and Michigan consumer sentiment and Canada's trade balance
  • Nikkei reports that Japan will extend CP purchases through March because of concerns about the economy, Japan's September industrial production revised to 2.1% from 1.4%, capacity utilization 1.6%, Japan's finance minister says the Japanese economy remains unstable, JPY higher
  • According to Australia's trade minister Australian exports are rising despite strong AUD,AUD higher
  • EU Q3 GDP rises 0.4% compared to -0.2% in Q2, a 0.5% rise was expected, EUR higher
  • Filings for home purchase mortgages fall to a nine year low, foreclosures drop 3%, refinancing applications rise
  • GBP supported by a report of possible merger between British Airways and Iberia
  • US Treasury Secretary Geithner says the US will have to borrow less than anticipated to repair the financial system, the October Federal deficit rose to a record 176.4bln from 155.3bln last month and receipts fell by 18% to a seven year low
  • In response to rising US unemployment President Obama calls for a jobs summit in December
  • US equity markets set to open higher, European equities mixed, Nikkei closed 29 points lower

Upcoming Events

  • US - Friday, September trade balance will be released expected at -31.65bln compared to -30.71bln last month along with October import prices expected at 1% compared 0.1% last month and November Michigan sentiment expected at 71 compared to 70.6 last month
  • CAN - Friday, September trade balance will be released expected at -2.70bln compared to -1.99bln last month