EUR POISED FOR FURTHER DOWNSIDE
• USD is mixed; with the commodity currencies outperforming but weakness from the European block. US data yesterday was strong.
• CAD is strong on some easing in Chinese liquidity pressures. BoC’s Lane speaks today; technicals still suggest USDCAD tests up to 1.06.
• EUR is weak; expect further downside as Draghi reminds markets that the exit is distant. Several ECB speakers today & EU Summit Thurs/Fri.
• GBP is weak on dovish BoE speakers; little reaction to Fin Stab Report.
• JPY is flat; technicals suggesting indecision. FX focus lies elsewhere.
• AUD rallies even with political uncertainty; Rudd take over leadership.
• Gold collapses on disinflation and shift away from QE.
Read the full report: FX Daily
Scotiabank