MONTH END FLOWS BIASED TO BUY USD, GBP & CAD
– USD is quiet leading into FOMC decision & European holidays on Wed.
– Month end flows: positive USD, GBP & CAD; negative JPY & EUR.
– CAD is flat leading into GDP (cons. +0.2%m/m); BoC governor announcement expected imminently as June approaches.
– EUR is weak as flash CPI falls unexpectedly to 1.2%y/y, unemployment rises to record 12.1%, spurring expectations of an ECB cut.
– CHF is flat; SNB increases allocation to equities and JPY.
– GBP is flat; but technical still support upside.
– JPY rallies as household spending jumps to 9‐high & jobless rate falls.
– CNY flat—manufacturing PMI expected at 50.7 (9pm EST).
Click here to read the full report: FX Daily
Scotiabank