USD WEAKENS INTO FOMC MINUTES & BERNANKE
• USD is weak leading into the FOMC minutes (2pm EST) & Bernanke at 4:10pm EST) the focus should be split between tapering & rate outlook.
• CAD is recovering lost ground – technicals are warning of a bullish break & the options market is suggesting an easing in USD upside protection.
• EUR is retracing some of yesterday’s losses; but sensitive to ECB.
• GBP is off its 3year lows, but weak—news flow is light.
• JPY is strong leading into what we expect to a non‐event BoJ.
• AUD is strong leading into its employment report and the Fed.
• CNY is weak after a disappointing trade release; exports sink 3.1%y/y.
Read the full report: FX Daily
Scotiabank