FX Highlights

  • USD is trading at new low for the year as stocks and commodity prices rise and US economic data points to recovery, strong US retail sales boosts stocks and crude, EUR trades at new 2009 high supported by economic optimism and improving risk sentiment, JPY rallies supported by comments from Japan's new finance minister that a strong JPY has merits for Japan's economy, Swiss investor sentiment rises sharply in September, UK unemployment rate rises to its highest level since 1995, commodity currencies supported by improving risk sentiment and rising price of gold
  • Focus turns to today's release of US CPI, current account, industrial production, capacity utilization and NAHB index and Canada's manufacturing shipments
  • Bernanke says recession is over, recovery may be slow, Fed's Yellen says recovery maybe slow tepid
  • Former Fed chairman Greenspan says that significant issuance of US treasury debt would put pressure on the USD
  • Japan's new PM Hatoyama says Asia won't exclude USD, outlook for Japan's economy remains unclear, Finance Minister Fujii talks of the advantages of strong JPY and that he is against intervention in currency markets unless swings become excessive, JPY higher
  • Australia's July Westpac index falls 1.8%, AUD higher
  • EU August inflation falls 0.2% y/y, EUR mixed
  • UK August unemployment rate at 7.9%, and claimant count was 24,400, average earnings 1.7%, GBP mixed
  • Swiss September investment sentiment rises to 58 from 18.6 last month, CHF lower
  • US equity markets set to open higher, European equities 1% higher, Nikkei closed 53 points higher

Upcoming Events

  • US- Wednesday, August CPI will be released expected 0.3% compared to flat last month along with August capacity utilization expected to improve to 69 from 68.5 last month, August industrial production expected at 0.6% compared to 0.5% last month and September NAHB expected at 19 compared to 18 in August
  • CAN- Wednesday, July manufacturing shipments will be released expected at 2.5% compared to 1.9% last month