FX Highlights

  • USD is opening mixed ahead of today's US jobs data with CAD and AUD higher, European currencies flat and JPY lower, there is optimism that today's US unemployment report will show the slowest loss of jobs in over a year and that the report will support recovery hope and risk appetite, crude prices are higher, growth linked currencies rise, CAD supported by unexpected rise in Canadian jobs growth, ECB officials discuss possible plans for exit from stimulus, Weber warns of continued uncertainty about future growth outlook
  • Focus turns to today's release US unemployment for August
  • Canada unexpectedly adds 27,100K jobs in August, unemployment rate rose to 11.5 year high of 8.7% from 8.6% last month, CAD higher
  • IMF says the global economy is emerging from downturn, recovery to be sluggish
  • Japans incoming PM Hatoyama says Japan will maintain strong ties with the US, DPJ party favors strong JPY to stimulate purchasing power and consumer demand, Japan's Q2 GDP is unrevised and confirms the Japanese economy is emerging from recession
  • Australia's Treasurer Swan says it premature to withdraw stimulus and 2010 growth will likely be sluggish
  • Japan's Q2 CAPEX falls 21.7% y/y, JPY lower
  • Fed's Fischer says US likely to enter period of prolonged sluggish growth, unemployment to remain high, deflation the larger risk than inflation
  • Economist Stiglitz sees significant chance of another contraction in the US economy
  • ECB Trichet says inflation risk is the reason for eventual exit from unconventional monetary policy, for time being liquidity expected to remain, withdrawal of stimulus will come when upside risks to price stability emerge, ECBs Weber says financial crisis is not over yet, EUR flat
  • Swiss August CPI rises 0.1%, CHF lower
  • UK auto sales rise for second month in July by 6%, GBP higher
  • Treasury Secretary Geithner calls for tougher worldwide bank capital and liquidity rules by 2012
  • US equity markets set to open higher, European equities higher, Nikkei closed 27 points lower

Upcoming Events

  • US- Friday, August unemployment will be released expected at 9.5% with nfp at -220k
  • CAN- Friday, August unemployment will be released expected at 8.7% with employment growth at -10k, the report has already been released