ECB CUTS RATES BY 0.25% to 0.50%; DRAGHI NEXT
– USD is mixed. Focus shifts to tradeoffs between austerity and growth.
– Fed statement suggest fiscal burden is rising & QE might prove favoured tool to compensate. Tomorrow’s nonfarm is key input.
– CAD is strong, flirting with parity; near‐term risk is not domestic.
– Carney delivers detailed speech on monetary policy and its future.
– EUR is flat as ECB cuts rates; press conf to give clarity on potential funding support for SME through collateral changes.
– GBP is strong rallying to fresh high on strong PMI construction.
– JPY is flat as April’s monetary base rises 23.1%y/y on BoJ policy.
– CNY rallies to new high (USDCNY 6.1529); HSBC manu PMI falls to 50.4.
Click here to read the full report: FX Daily
Scotiabank