USD WEAK AS MARKET IS POSITIONED FOR DOVISH FED
– USD broadly weaker leading into the FOMC decision (2pm EST).
– CAD is strong, parity is in site, as fundamentals turn in its favour. New BoC gov likely to be announced imminently; Carney speaks at6pm EST.
– EUR is strong as relative central bank policy likely to temporarily support it; May day holidays celebrated with anti-austerity marches.
– GBP rallies; strong manu PMI & Osborne urges BoE to support growth
– JPY is flat as focus shifts to Fed & ECB. Technicals are neutral.
-AUD is weak on disappointing Chinese PMI of 50.6 & soft manu data.
Click here to read the full report: FX Daily
Scotiabank