FX Highlights

  • USD and JPY are trading higher supported by a spike in risk aversion as Asian equity markets decline and crude prices fall below $62 a barrel, Japanese machinery orders unexpectedly dropped to a new low and the Nikkei index trades a six-week low, USD supported by uncertainty about the global recovery, USD pares early gains in reaction to report of a sharp rise in German industrial output and expected steady open for US equities
  • G-8 draft communiqué makes no reference to FX markets or the USD, G-8 officials expressed concern about economic recovery and warned that it's too early to withdraw stimulus, pledged to reject protectionism
  • Japan's May core machinery orders fall 3%, May current account surplus falls 34.3%, JPY at a six week high supported by safe haven flows
  • UK June Nationwide consumer confidence index rises to 58 from 54 last month, Halifax house price index falls 0.5%, GBP flat
  • EU Q1 GDP at -2.5%q/q, N. -4.9%y/y, German industrial output rose 3.7%, an 0.5% rise was expected, this was the largest monthly gain in 16 years, EUR higher
  • Australia's July consumer confidence index rises 9.3% to 109.4, May housing finance rises 2.2%,AUD lower
  • Swiss SECO June unemployment hits highest level in three years, KOF says Swiss unemployment rate could hit 6% in 2010, recovery will be sluggish at best, CHF flat
  • ABA says credit card delinquencies hit record high of 3.23% in Q1 2009 sparked by fallout from job losses and housing market
  • US equity markets set to open higher, European equities mixed, Nikkei closed 227 points lower

Upcoming Events

  • US-Wednesday, May consumer credit will be released expected -9.5 bln compared to -15.7 bln last month
  • CAN- Wednesday, June housing starts will be released expected at 130k compared to the hundred 124k last month