Markets are shedding risk into the NA open after relatively quiet Asian and European sessions. The USD is strong, with the DXY index flirting with a break of its July 2012 high of 84.10. Gold is notably weak reflecting a global environment where central bank policy is aggressive, growth is moderate and inflationary pressures have failed to emerge. In terms of FX, NZD and AUD remain under significant pressure both are at new lows today, with NZD down 1.1% and AUD down 0.8%. CAD is down 0.5%, while JPY, EUR and GBP are all down between 0.1 and 0.3%. Today there is a slew of important data with CPI, housing starts and housing, covering off key inputs for the Fed; with three Fed speakers
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Scotiabank