USD WEIGHED DOWN BY FED EXPECTATIONS
– USD is broadly weaker as disappointing US growth and low inflation build expectations for a more dovish Fed, pushing out QE tapering.
– CAD is strong, as Fed expectations drive CAD short covering.
– EUR rallies even as we move into a week where the ECB is expected to cut interest rates; Italy swears in parliament & German inflation low.
– GBP is strong on strong housing data; spot flirting with break above 100‐day MA at 1.5574.
– JPY is flat with Japan on holidays. USDJPY downside risks build.
– AUD is strong, back above 1.03 as risk assets are bid.
– This week: Fed, ECB, Chinese PMI & non‐farm payrolls.
Click here to read the full report: FX Daily
Scotiabank