USD DRIVEN BY NEAR‐TERM FED EXPECTATIONS
• USD is stronger retracing some of the Hilsenrath induced weakness.
• The FED likely to prove a near-term USD negative.
• CAD is flat—BoC financial system review suggests risks are declining.
• EUR is weak on technical selling, soft inflation which leaves door open to a dovish ECB. We hold a year‐end target of 1.25.
• GBP is soft on flows as news is limited. Tucker (dove) departs BoE.
• JPY strengthens on limited news; BoJ minutes contain no surprises.
• AUD is weak but well off Tuesday’s low.
Read the full report: FX Daily
Scotiabank