FX Highlights

  • The USD is trading mixed as yesterday's strong stock market gains had little impact on the Forex market, AUD is supported by RBA policy statement which states that interest rates will need to gradually rise, the RBA also raised its growth and inflation forecasts, Swiss unemployment comes in better than expected, UK output prices rise, German industrial orders rise more than expected, CAD trades lower as Canada posts an unexpected loss of jobs in October and higher unemployment, USD price direction hinges is on whether today's US unemployment report contributes to continuation of risk appetite
  • Focus turns to today's release of US unemployment, wholesale sales and consumer credit
  • Canada's October unemployment rate rose to 8.6% from 8.4%, Canada unexpectedly lost 43,200k jobs in October, CAD lower
  • Japan's September leading indicator rose 3.2 points, coincident indicator rose 1.3, JPY higher
  • RBA says further gradual rise in interest rates needed, RBA lifts growth forecast to 3.25% next year with inflation at 2.25%, October construction activity rose to 50.9, AUD higher
  • German September industrial orders rise 0.9%, ECB's Nowontny says FX rates are risks to economic development, EUR lower
  • UK October output prices rose 0.2% and input prices rise 2.6%, GBP higher
  • Swiss October unemployment was unchanged at 4.1%, CHF mixed
  • Canadian manufacturers see the worst of the recession over but expressed concern that strong CAD is a hindrance to recovery, Canada's Financial Minister Flaherty says he expects to see more job weakness until the economic recovery takes hold
  • The Senate voted to extend jobless benefits for 14 weeks and the 8k tax credit for home buyers until April 30th 2010
  • US equity markets set to open flat, European equities mixed, Nikkei closed 72 points higher

Upcoming Events

  • US - Friday, October unemployment and non-farm payrolls will be released with unemployment expected to rise 0.1% to 9.9% with nfp at -175k, along with September wholesale sales expected at 0.6% and September consumer credit expected at -10bln
  • CAN - Friday, October unemployment will be released expected at 8.5% compared to 8.4% with jobs growth at 10k (already released)