Major overnight headlines:
• IMF Lagarde: Global growth downside risks remain, EZ operating at zero speed, US on the mend.
• Fed George reiterates call to start slow bond buying at a measured pace
• Fed Fisher: U.S. economy moving forward at ‘near-stall speed’. Fed stimulus lacks potency amid fiscal deadlock. Fed poised to evaluate policy stance, perhaps fine tune tactics. Should begin to reduce QE, expects 30yr bull run in bonds to end
• Japan PM Abe pledges to raise incomes by 3% or more annually over next 10 years. Vows to slay deflation monster with fiscal, monetary policy
• China Central Bank report: will increase flexibility of yuan exchange rate
• Brazil scraps 6% IOF tax on foreign fixed income investment
Read the full report: FX Daily
BMO