WILL USD COLLAPSE IN JUNE 2013 JUST LIKE JUNE 2012?
• USD faces a sudden & dramatic bout of weakness into the NA open.
• CAD is strong leading into the BoC decision; Carney’s last where rates are expected to remain on hold at 1.0% & a maintenance statement.
• EUR is strong as the EC is expected to provide a more balanced austerity/growth position; market ignores weak German employment.
• GBP rallies on sudden USD weakness; CBI retail volumes disappoints.
• JPY is strong on USD weakness; Kuroda & BoJ‐market meeting prove non‐event. Bond yields remain important focus.
• CNY weakens; IMF sees CNY as moderately overvalued.
• A USD rally in May 2012 was followed by USD weakness in June 2012 as nonfarm payrolls disappointed driving expectation for Fed easing. Could markets face a replay?
Click here to read the full report: FX Daily
Scotiabank