FX Highlights

  • USD starts the week lower trading at six-week low as global markets rise, crude prices top $64 a barrel and CIT secures a $3 bln loan to avoid bankruptcy, focus turns to today's release of US leading economic indicators and US earnings reports
  • Japanese markets closed for holiday, JPY lower pressured by improving risk sentiment and speculation the US recession is nearing an end
  • The National Association of Business Economists says the US recession is easing, but may not yet be over
  • Kospi rallies 2.5% supported by Morgan Stanley upgrade of its 12 month target for the index to 1,650 from 1,340
  • UK July Rightmove House Price Index rose 0.6%, UK M4 falls to 0.2% and lending rose 0.2%, GBP higher supported by improving risk appetite and rising UK house price index
  • Swiss and US officials to meet to discus the row over Swiss accounts thought to be involved in tax fraud, CHF higher raising risk of intervention
  • Australia Q2 PPI fell 0.8%,AUD higher
  • CAD higher supported by rally in commodities and global equity markets
  • Mexico's central bank lowers its overnight interest rate to 4.5% and says it will pause and at easing cycle, MXP higher
  • Russian ruble is at its highest level in two weeks as oil prices rise
  • China's Premier Wen says China will maintain stable Yuan, Yuan higher
  • Euro and sterling Libor rates at record low
  • US equity markets set to open higher, European equities 2% higher, Nikkei closed for holiday

Upcoming Events

  • US- Monday, June leading economic indicators will be released expected at 0.5% compared to 1.2%
  • Can- Monday, May wholesale sales will be released expected at -2.1% compared to -0.6% last month, BOC policy meeting Tuesday