WEAK ADVANCE EURO AREA PMI’S SHIFT FOCUS TO ECB
– USD – DXY back to early April highs on retracement of recent decline.
– CAD weakness continues on weak global growth; risk is retail sales.
– EUR declines as PMI’s turn focus on ECB response to weak prospects.
– GBP under pressure on CBI data & EUR, but trend support remains.
– JPY strengthens on risk aversion due to global growth concerns; OECD flags need for Japan to deal with fiscal and structural issues.
– AUD maintains decline on weak China PMI ahead of domestic CPI.
– NZD – RBNZ expected to hold rates at 2.50% (5:00pm EST) and will likely mention continued NZD strength given 1.5% rise from last stmt.
– CNY – flat; China PMI falls to 50.5 from 51.6 prev. vs. 51.5 exp.
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Scotiabank