FX Highlights

  • The USD is trading mixed to firm as equity markets slide, crude prices fall below $79 a barrel and the BOJ's Nishimura warns that Japan's economy still faces significant risks, GBP and NDZ rise as the governor of New Zealand's central bank said that strong NDZ will not be an obstacle to raising interest rates, and BOE's King said that interest rates will return to normal level at some point, the BOE unanimously elected to hold rate policy in the current level of asset purchases unchanged in October, GBP trades at one month high versus USD, CAD continues to underperform as the BOC warns that strong CAD offsets the economic recovery and the BOC policy statement reduces the odds of an early rate hike, AUD pressured by report that China may be preparing to tighten monetary policy
  • Focus turns to today's release of US Beige book
  • BOJ's Nishimura warns that risk remains high for the Japanese economy, must maintain monetary easing for sustained economic recovery, ending corporate bond purchase plan is different than exiting easy monetary policy, JPY lower pressured by selling in cross trade to GBP
  • Australia's September new vehicle sales rise 2.9%, Westpac leading index rises 1.7%, first rise in the index since September 2008, AFR says Australian rate hikes reversible if economic risks re-emerge, AUD lower
  • French Finance Minister Lagarde says the EU Q3 growth will be better than previous quarters, EUR lower
  • UK October CBI manufacturing orders at -51 versus -48 last month, MPC voted unanimously to keep quantitative ease at current levels and hold great policy unchanged, BOE Governor King says interest rates will return to normal levels at some point, GBP higher
  • Economist Connolly says the US faces a series of asset bubbles unless the US lets the USD fall another 25%
  • China tells banks to prepare for shift in policy and warns that loose monetary policy will not continue indefinitely
  • Qatar oil Minister says the debate will continue on whether to use the USD for oil trade
  • IMF's Lipsky says that currency valuations are not competing the global economy
  • Sun Microsystems to cut 3k jobs
  • US equity markets set to open lower, European equities 1% lower, Nikkei closed 3 points lower

Upcoming Events

  • US - Wednesday, no major US economic data is scheduled for release today
  • CAN - Wednesday, no major Canadian data is scheduled for release today